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Author: Kinshuk Jerath
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
We study the bidding strategies of vertically differentiated firms that bid for sponsored search advertisement positions for a keyword at a search engine. We explicitly model how consumers navigate and click on sponsored links based on their knowledge and beliefs about firm qualities. Our model yields several interesting insights and a main counter-intuitive result we focus on is the position paradox." The paradox is that a superior firm may bid lower than an inferior firm and obtain a position below it, yet still obtain more clicks than the inferior firm. Under a pay-per- impression mechanism, the inferior firm wants to be at the top where more consumers click on its link, while the superior firm is better off by placing its link at a lower position as it pays a smaller advertising fee but some consumers will still reach it in the search of a higher-quality firm. Under a pay-per-click mechanism, the inferior firm has an even stronger incentive to be at the top since now it only has to pay for the consumers who do not know the firms' reputations and, therefore, can bid more aggressively. Interestingly, as the quality premium for the superior firm increases, and/or if more consumers know the identity of the superior firm, the incentive for the inferior firm to be at the top may increase. Contrary to conventional belief, we find that the search engine may have the incentive to over-weight the inferior firm's bid and strategically create the position paradox to increase overall clicks by consumers. To validate our model, we analyze a dataset from a popular Korean search engine firm and find that: (i) a large proportion of auction outcomes in the data show the position paradox, and (ii) sharp predictions from our model are validated in the data.
Author: Kinshuk Jerath
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
We study the bidding strategies of vertically differentiated firms that bid for sponsored search advertisement positions for a keyword at a search engine. We explicitly model how consumers navigate and click on sponsored links based on their knowledge and beliefs about firm qualities. Our model yields several interesting insights and a main counter-intuitive result we focus on is the position paradox." The paradox is that a superior firm may bid lower than an inferior firm and obtain a position below it, yet still obtain more clicks than the inferior firm. Under a pay-per- impression mechanism, the inferior firm wants to be at the top where more consumers click on its link, while the superior firm is better off by placing its link at a lower position as it pays a smaller advertising fee but some consumers will still reach it in the search of a higher-quality firm. Under a pay-per-click mechanism, the inferior firm has an even stronger incentive to be at the top since now it only has to pay for the consumers who do not know the firms' reputations and, therefore, can bid more aggressively. Interestingly, as the quality premium for the superior firm increases, and/or if more consumers know the identity of the superior firm, the incentive for the inferior firm to be at the top may increase. Contrary to conventional belief, we find that the search engine may have the incentive to over-weight the inferior firm's bid and strategically create the position paradox to increase overall clicks by consumers. To validate our model, we analyze a dataset from a popular Korean search engine firm and find that: (i) a large proportion of auction outcomes in the data show the position paradox, and (ii) sharp predictions from our model are validated in the data.
Author: Yu-Wei Hsieh
Publisher:
ISBN:
Category :
Languages : en
Pages : 27
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Book Description
Using data from "WebsiteX", one of the largest online marketplaces in the world, we estimate a structural model of sponsored search auctions where bidders have heterogeneous click-through curves. Unlike earlier studies, our model accommodates two stylized empirical facts: the advertiser prominence eff ect and the position paradox. Using our estimates, we simulate the e ffects of introducing bid-scoring to the auctions. We fi nd that scoring reduces equilibrium per-click prices, but boosts the number of clicks by sorting prestigious merchants to the top positions. Overall there is only a very modest reduction in total revenues from introducing bid-scoring, despite the intent to reward high-quality merchants with price discounts. Methodologically, this paper also illustrates an application of a novel "approximate Bayesian" estimation method to a structural multi-item auction model.
Author: Koen W. De Bock
Publisher: Routledge
ISBN: 1317185285
Category : Business & Economics
Languages : en
Pages : 428
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Book Description
While the definition of database marketing hasn’t changed, its meaning has become more vivid, versatile and exciting than ever before. Advanced Database Marketing provides a state-of-the-art guide to the methods and applications that define this new era in database marketing, including advances in areas such as text mining, recommendation systems, internet marketing, and dynamic customer management. An impressive list of contributors including many of the thought-leaders in database marketing from across the world bring together chapters that combine the best academic research and business applications. The result is a definitive guide and reference for marketing and brand analysts, masters students, teachers and researchers in marketing analytics. The proliferation of marketing platforms and channels and the complexity of customer interactions create an urgent need for a multidisciplinary and analytical toolkit. Advanced Database Marketing is a resource to enable marketers to achieve insights and increased financial performance; to provide them with the capability to implement and evaluate approaches to marketing that will meet, in equal measure, the changing needs of customers and the businesses that serve them.
Author: Susan Athey
Publisher:
ISBN:
Category : Auctions
Languages : en
Pages : 52
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Book Description
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.
Author: Petyon Young
Publisher: Elsevier
ISBN: 0444537678
Category : Mathematics
Languages : en
Pages : 1025
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Book Description
The ability to understand and predict behavior in strategic situations, in which an individual’s success in making choices depends on the choices of others, has been the domain of game theory since the 1950s. Developing the theories at the heart of game theory has resulted in 8 Nobel Prizes and insights that researchers in many fields continue to develop. In Volume 4, top scholars synthesize and analyze mainstream scholarship on games and economic behavior, providing an updated account of developments in game theory since the 2002 publication of Volume 3, which only covers work through the mid 1990s. Focuses on innovation in games and economic behavior Presents coherent summaries of subjects in game theory Makes details about game theory accessible to scholars in fields outside economics
Author: Tie-Yan Liu
Publisher: Springer
ISBN: 331913129X
Category : Computers
Languages : en
Pages : 512
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Book Description
This book constitutes the thoroughly refereed conference proceedings of the 10th International Conference on Web and Internet Economics, WINE 2014, held in Beijing, China, in December 2014. The 32 regular and 13 short papers were carefully reviewed and selected from 107 submissions and cover results on incentives and computation in theoretical computer science, artificial intelligence, and microeconomics.
Author: Jonna Järveläinen
Publisher: Springer
ISBN: 3642398081
Category : Computers
Languages : en
Pages : 178
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Book Description
This book constitutes the refereed proceedings of the 15th International Conference on Electronic Commerce, ICEC 2013, held in Turku, Finland, in August 2013. The theme of ICEC 2013 was "effective, agile, and trusted e-services co-creation” and reflects the alignment between computerized, formalized business procedures with the need to flexibly adapt and innovate businesses on the spot according to changing customer needs and requirements. The 13 papers published in this book were carefully reviewed and selected from more than 50 submissions, resulting in an acceptance rate of less than 25%. They are organized in topical sections on online advertisements and referential systems, recommender systems and pricing, social media, mobile services, business models, and societal implications.
Author: Leonard Barolli
Publisher: Springer
ISBN: 3319935542
Category : Technology & Engineering
Languages : en
Pages : 987
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Book Description
This book presents the latest research findings, methods and development techniques related to Ubiquitous and Pervasive Computing (UPC) as well as challenges and solutions from both theoretical and practical perspectives with an emphasis on innovative, mobile and internet services. With the proliferation of wireless technologies and electronic devices, there is a rapidly growing interest in Ubiquitous and Pervasive Computing (UPC). UPC makes it possible to create a human-oriented computing environment where computer chips are embedded in everyday objects and interact with physical world. It also allows users to be online even while moving around, providing them with almost permanent access to their preferred services. Along with a great potential to revolutionize our lives, UPC also poses new research challenges.
Author: Lee, In
Publisher: IGI Global
ISBN: 1466697881
Category : Computers
Languages : en
Pages : 2440
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Book Description
The convenience of online shopping has driven consumers to turn to the internet to purchase everything from clothing to housewares and even groceries. The ubiquity of online retail stores and availability of hard-to-find products in the digital marketplace has been a catalyst for a heighted interest in research on the best methods, techniques, and strategies for remaining competitive in the era of e-commerce. The Encyclopedia of E-Commerce Development, Implementation, and Management is an authoritative reference source highlighting crucial topics relating to effective business models, managerial strategies, promotional initiatives, development methodologies, and end-user considerations in the online commerce sphere. Emphasizing emerging research on up-and-coming topics such as social commerce, the Internet of Things, online gaming, digital products, and mobile services, this multi-volume encyclopedia is an essential addition to the reference collection of both academic and corporate libraries and caters to the research needs of graduate-level students, researchers, IT developers, and business professionals. .
Author: Sebastian Klapdor
Publisher: Springer Science & Business Media
ISBN: 3658017325
Category : Business & Economics
Languages : en
Pages : 146
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Book Description
Internet advertising has come off age; yet little is known in research and practice about how digital channel advertising really works. The empirical research in this thesis intends to fill this gap and shed light on the effectiveness of online advertising. Two studies are conducted that focus on multichannel online advertising and search engine advertising, the single-most important online ad channel. In an interdisciplinary approach, both studies first develop comprehensive theoretical models based on existing work in related research fields—for example, marketing and information retrieval. This approach pays off and leads to new and insightful findings: - There are synergies in multichannel online advertising: purchase propensity increases when consumers receive advertising messages through multiple channels. - The channel order can influence the conversion probability. - Click-through rates in search engine advertising are influenced through various keyword criteria on semantic and syntactic level The results of this thesis constitute an important starting point for future research in online advertising. Furthermore, the results enable practitioners to improve the effectiveness of online advertising through a more differentiated campaign management approach. Based on its findings, the thesis outlines how a future integrated approach to online advertising could look like.
