Sponsored search advertising has grown rapidly since the last decade and is now a significant revenue source for search engines. To ameliorate revenues, search engines often set fixed or variable reserve price to in influence advertisers’ bidding. This paper studies and compares two pricing...

We introduce and analyze an inter-temporal choice model where customer valuations are uncertain and evolve over time. The model leads directly to the study of call options on capacity that are similar to partially refundable fares. We show that the capacity provider earns significantly higher...

We present tight bounds and heuristics for personalized, multi-product pricing problems. Under mild conditions we show that offering a non-personalize price in the direction of a positive vector (factor) has a tight profit guarantee relative to optimal personalized pricing. An optimal...