Current Issues in Keyword Auctions (Book Chapter)

Keyword auctions are another multi-billion dollar application of auctions after the celebrated eBay-like business-to-consumer auctions in electronic commerce. Inevitably, keyword auctions have recently gained attention among researchers. Questions regarding what (is keyword auction), why (we should use keyword auctions), and how (to design keyword auctions), have been raised. While some of these issues has become clearer over time, many are still open. The purpose of this paper is to summarize the current efforts to address these questions, focusing mainly on the third, that is, how to design effective keyword auctions. We also point out several issues for future research