Pricing Average Price Advertising Options When Underlying Spot Market Prices Are Discontinuous

  title={Pricing Average Price Advertising Options When Underlying Spot Market Prices Are Discontinuous},
  author={Bowei Chen and M. Kankanhalli},
  journal={IEEE Transactions on Knowledge and Data Engineering},
  • Bowei Chen, M. Kankanhalli
  • Published 22 February 2017
  • Business, Economics
  • IEEE Transactions on Knowledge and Data Engineering
Advertising options have been recently studied as a special type of guaranteed contracts in online advertising, which are an alternative sales mechanism to real-time auctions. An advertising option is a contract which gives its buyer a right but not obligation to enter into transactions to purchase page views or link clicks at one or multiple pre-specified prices in a specific future period. Different from typical guaranteed contracts, the option buyer pays a lower upfront fee but can have… 

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