Reserve Prices in Internet Advertising Auctions: A Field Experiment
19 Pages Posted: 23 Mar 2010
Date Written: December 24, 2009
We present the results of a large field experiment on setting reserve prices in auctions for online advertisements, guided by the theory of optimal auction design suitably adapted to the sponsored search setting. Consistent with the theory, following the introduction of new reserve prices revenues in these auctions have increased substantially.
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