Position Auctions with Consumer Search
54 Pages Posted: 18 Aug 2009 Last revised: 5 Sep 2024
Date Written: August 2009
Abstract
This paper examines a model in which advertisers bid for "sponsored-link" positions on a search engine. The value advertisers derive from each position is endogenized as coming from sales to a population of consumers who make rational inferences about firm qualities and search optimally. Consumer search strategies, equilibrium bidding, and the welfare benefits of position auctions are analyzed. Implications for reserve prices and a number of other auction design questions are discussed.
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Paid Placement: Advertising and Search on the Internet
By Yongmin Chen and Chuan He
-
An Empirical Analysis of Search Engine Advertising: Sponsored Search in Electronic Markets
By Anindya Ghose and Sha Yang
-
By Sha Yang and Anindya Ghose
-
From Generic to Branded: A Model of Spillover Dynamics in Paid Search Advertising
-
By Juan Feng, Hemant K. Bhargava, ...
-
Search Engine Advertising: Channel Substitution when Pricing Ads to Context
By Avi Goldfarb and Catherine E. Tucker
-
A Dynamic Model of Sponsored Search Advertising
By Song Yao and Carl F. Mela
-
Ex Ante Information and the Design of Keyword Auctions
By De Liu, Jianqing Chen, ...