Abstract
This paper shows that the quality scores in sponsored search auctions can be optimally chosen to extract all the advertisers' surplus. The reason for the full extraction result is that the quality scores may effectively set all the bidders' valuations equal to the highest valuation, which induces intense bidding competition.
Original language | English |
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Article number | 28 |
Journal | B.E. Journal of Theoretical Economics |
Volume | 10 |
Issue number | 1 |
DOIs | |
Publication status | Published - 2010 |
Keywords
- full extraction
- online advertising
- quality score
- sponsored search
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)