Optimal quality scores in sponsored search auctions: Full extraction of advertisers' surplus

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.

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Year of publication:	2009
Authors:	Yoon, Kiho
Institutions:	Institute of Economic Research, Korea University
Subject:	Online advertising \| Sponsored search \| Quality score \| Full extraction

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Extent:	application/pdf
Series:	Discussion Paper Series.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 0904 19 pages
Classification:	D44 - Auctions ; M37 - Advertising
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005616522