{"id":179998,"date":"2010-01-14T09:00:00","date_gmt":"2010-01-14T14:00:00","guid":{"rendered":"http:\/\/hbswk.hbs.edu\/rss\/6353.html"},"modified":"2010-01-14T09:00:00","modified_gmt":"2010-01-14T14:00:00","slug":"optimal-auction-design-and-equilibrium-selection-in-sponsored-search-auctions","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/179998","title":{"rendered":"Optimal Auction Design and Equilibrium Selection in Sponsored Search Auctions"},"content":{"rendered":"<div>\n<table>\n<tbody>\n<tr>\n<td>Published:<\/td>\n<td>January 14, 2010<\/td>\n<\/tr>\n<tr>\n<td>Paper Released:<\/td>\n<td>January 2010<\/td>\n<\/tr>\n<tr>\n<td>Authors:<\/td>\n<td>Benjamin G. Edelman and Michael Schwarz<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<div>\n<div>\n<div>\n<h3>Executive Summary:<\/h3>\n<p>Reserve prices may have an important impact on search advertising marketplaces. But the effect of reserve prices can be opaque, particularly because it is not always straightforward to compare &#8220;before&#8221; and &#8220;after&#8221; conditions. HBS professor Benjamin G. Edelman and Yahoo&#8217;s Michael Schwarz use a pair of mathematical models to predict responses to reserve prices and understand which advertisers end up paying more. Key concepts include:<\/p>\n<ul>\n<li>A search engine&#8217;s optimal reserve price is independent of the number of bidders and also independent of the rate at which click-through rate declines over positions.<\/li>\n<li>Most incremental revenue from setting reserve price optimally comes from the indirect effects on high bidders&mdash;not from the low bidder&#8217;s direct effect, nor from indirect effects on other low bidders. This result may appear counter-intuitive because top bidders&#8217; large valuations place them, in an important sense, &#8220;furthest from&#8221; the reserve price.<\/li>\n<\/ul><\/div>\n<\/p><\/div>\n<div>\n<h4>Abstract<\/h4>\n<p>An abstract is unavailable at this time.<\/p>\n<div>\n<h4>Paper Information<\/h4>\n<ul>\n<li><a href=\"http:\/\/www.hbs.edu\/research\/pdf\/10-054.pdf\">Full Working Paper Text<\/a> <img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/hbswk.hbs.edu\/images\/site\/ico-pdf.gif\" height=\"16\" width=\"16\" alt=\"\" \/><\/li>\n<li>Working Paper Publication Date: January 2010<\/li>\n<li>HBS Working Paper Number: 10-054<\/li>\n<li>Faculty Unit:  <a href=\"http:\/\/www.hbs.edu\/units\/nom\/\">Negotiation, Organizations &#038; Markets<\/a>&nbsp;<img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/hbswk.hbs.edu\/images\/site\/ico-external.gif\" height=\"11\" width=\"14\" alt=\"\"\/><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Published: January 14, 2010 Paper Released: January 2010 Authors: Benjamin G. Edelman and Michael Schwarz Executive Summary: Reserve prices may have an important impact on search advertising marketplaces. But the effect of reserve prices can be opaque, particularly because it is not always straightforward to compare &#8220;before&#8221; and &#8220;after&#8221; conditions. HBS professor Benjamin G. Edelman [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-179998","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/179998","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=179998"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/179998\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=179998"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=179998"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=179998"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}