Position Auctions with Consumer Search
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.
|Date of creation:||Aug 2009|
|Date of revision:|
|Publication status:||published as Susan Athey & Glenn Ellison, 2011. "Position Auctions with Consumer Search," The Quarterly Journal of Economics, Oxford University Press, vol. 126(3), pages 1213-1270.|
|Contact details of provider:|| Postal: |
Web page: http://www.nber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Yongmin Chen & Chuan He, 2006.
"Paid Placement: Advertising and Search on the Internet,"
06-02, NET Institute, revised Sep 2006.
- Yongmin Chen & Chuan He, 2011. "Paid Placement: Advertising and Search on the Internet," Economic Journal, Royal Economic Society, vol. 121(556), pages F309-F328, November.
- Chris M. Wilson, 2008.
"Ordered Search and Equilibrium Obfuscation,"
Economics Series Working Papers
401, University of Oxford, Department of Economics.
- White, Alexander, 2013. "Search engines: Left side quality versus right side profits," International Journal of Industrial Organization, Elsevier, vol. 31(6), pages 690-701.
- Glenn Ellison & Alexander Wolitzky, 2009.
"A Search Cost Model of Obfuscation,"
NBER Working Papers
15237, National Bureau of Economic Research, Inc.
- Ellison, Glenn & Fudenberg, Drew & Mobius, Markus, 2010.
Staff General Research Papers
32106, Iowa State University, Department of Economics.
- Glenn Ellison & Drew Fudenberg & Markus Mobius, 2010. "Competing Auctions," Levine's Working Paper Archive 506439000000000092, David K. Levine.
- Glenn Allison & Drew Fudenberg, 2002. "Competing Auctions," Harvard Institute of Economic Research Working Papers 1960, Harvard - Institute of Economic Research.
- Ellison, Glenn & Mobius, Markus & Fudenberg, Drew, 2004. "Competing Auctions," Scholarly Articles 3043414, Harvard University Department of Economics.
- Varian, Hal R., 2007. "Position auctions," International Journal of Industrial Organization, Elsevier, vol. 25(6), pages 1163-1178, December.
- Glenn Ellison & Sara Fisher Ellison, 2009.
"Search, Obfuscation, and Price Elasticities on the Internet,"
Econometric Society, vol. 77(2), pages 427-452, 03.
- Glenn Ellison & Sara Fisher Ellison, 2004. "Search, Obfuscation, and Price Elasticities on the Internet," NBER Working Papers 10570, National Bureau of Economic Research, Inc.
- Demange, Gabrielle & Gale, David & Sotomayor, Marilda, 1986. "Multi-Item Auctions," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 863-72, August.
- Börgers, Tilman & Cox, Ingemar & Pesendorfer, Martin & Petricek, Vaclav, 2008.
"Equilibrium Bids in Sponsored Search Auctions: Theory and Evidence,"
29125, University Library of Munich, Germany.
- Tilman Borgers & Ingemar Cox & Martin Pesendorfer & Vaclav Petricek, 2013. "Equilibrium bids in sponsored search auctions: theory and evidence," LSE Research Online Documents on Economics 46841, London School of Economics and Political Science, LSE Library.
- Tilman Borgers & Ingemar Cox & Martin Pesendorfer & Vaclav Petricek, 2007. "Equilibrium bids in sponsored search auctions: theory and evidence," LSE Research Online Documents on Economics 4910, London School of Economics and Political Science, LSE Library.
- Lawrence M. Ausubel & Peter Cramton, 2004.
"Auctioning Many Divisible Goods,"
Journal of the European Economic Association,
MIT Press, vol. 2(2-3), pages 480-493, 04/05.
- Peter Cramton & Yoav Shoham & Richard Steinberg, 2007. "An Overview of Combinatorial Auctions," Papers of Peter Cramton 07oca, University of Maryland, Department of Economics - Peter Cramton, revised 2007.
- Benjamin Edelman & Michael Ostrovsky & Michael Schwarz, 2007.
"Internet Advertising and the Generalized Second-Price Auction: Selling Billions of Dollars Worth of Keywords,"
American Economic Review,
American Economic Association, vol. 97(1), pages 242-259, March.
- Benjamin Edelman & Michael Ostrovsky & Michael Schwarz, 2005. "Internet Advertising and the Generalized Second Price Auction: Selling Billions of Dollars Worth of Keywords," NBER Working Papers 11765, National Bureau of Economic Research, Inc.
- Diamond, Peter A., 1971. "A model of price adjustment," Journal of Economic Theory, Elsevier, vol. 3(2), pages 156-168, June.
- Emir Kamenica, 2008. "Contextual Inference in Markets: On the Informational Content of Product Lines," American Economic Review, American Economic Association, vol. 98(5), pages 2127-49, December.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:15253. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.