We develop a model of pricing and advertising for e-commerce. N identical sellers, selling an homogeneous product, each choose a price and a web-based advertising policy. Buyers have usual demand functions and search optimally on the Internet. A Symmetric Nash Equilibrium (SNE) is derived and...

This paper studies how to endogenously assess the value of a ldquo;superiorrdquo; advertising position within the price competition and examines the resulting location competition outcomes and price dispersion patterns. We consider a game-theoretic model in which firms compete for advertising...

This paper analyzes how the presence of organic listing as a competing information source affects advertisers' sponsored bidding and the equilibrium outcomes in search advertising. We consider a game-theoretic model in which two firms bid for sponsored advertising slots provided by a...