The Economics of Internet Search

  title={The Economics of Internet Search},
  author={Hal R. Varian},
This lecture provides an introduction to the economics of Internet search engines. After a brief review of the historical development of the technology and the industry, I describe some of the economic features of the auction system used for displaying ads. It turns out that some relatively simple economic models provide significant insight into the operation of these auctions. In particular, the classical theory of two-sided matching markets turns out to be very useful in this context. 
Online ad auctions: An experiment
A human subject laboratory experiment compares the real-time market performance of the two most popular auction formats for online ad space, Vickrey- Clarke-Groves (VCG) and Generalized Second Price
Optimal Budget Allocation Across Search Advertising Markets
A novel budget allocation optimization model with multiple search advertising markets and a finite time horizon is developed and the identified properties derived from the solution process illuminate critical managerial insights for advertisers in sponsored search.
The Effect of Online Search on International Trade
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Ad-Blockers: Extortionists or Digital Age Robin Hoods?
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Neutrality in internet regulation: three regulatory principles
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Measuring consumer inflation in a digital economy
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What Really Matters in Auction Design
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Price Cycles in Online Advertising Auctions
It is found that in such a dynamic environment, bidders’ bidding strategies follow a cyclical pattern similar to that conjectured by Edgeworth (1925) in a totally different context and an empirical framework based on maximum likelihood estimation of latent Markov state switching is proposed to confirm the theory.
The Strategy Structure of Two Sided Matching Markets
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Elicitation of Honest Preferences for the Assignment of Individuals to Positions
  • H. Leonard
  • Economics
    Journal of Political Economy
  • 1983
The problem of eliciting honest preferences from individuals who must be assigned to a set of positions is considered. Individuals know that they will be charged for the positions to which they are
Efficient Mechanism Design
The main result is that a generalization of the well-known Vickrey-Clarke-Groves mechanism maximizes the planner's "revenue'' among all efficient mechanisms, which serves to unify many results in mechansim design theory.
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