The digitization of commerce has caused fundamental changes in consumer information search and use. With an increasing number of consumers using search engines as an integral component of their online purchase process, online sponsored search markets, such as those provided by Google and Yahoo!,...

This paper develops and analyzes a model of competition between platforms in an industry with indirect network effects, with a specific focus on complementary product exclusivity. The objective is to understand the conditions under which complement exclusivity can be observed and analyze the...

Pay-for-performance (P4P) pricing schemes such as pay-per-click and pay-per-action have grown in popularity in Internet advertising. Meanwhile, the traditional pay-per-impression (PPI) scheme persists, and several advertising publishers have started to offer a hybrid mix of PPI and P4P schemes....

Apart from reducing buyer search costs, web-based commerce has also enabled the use ofintelligent agent technologies that reduce seller search costs by targeting buyers, customizing,and pricing products in real-time. Our model of an electronic market with customizable productsanalyzes the...

The Expectation-Maximization (EM) algorithm is a very popular optimization tool for mixture problems and in particular for model-based clustering problems. However, while the algorithm is convenient to implement and numerically very stable, it only produces local solutions. Thus, it may not...

There has been substantial work exploring strategies, both theoretical and empirical, for selling and buying in online auctions. However, much of this work has considered single auctions in isolation, partially because it is hard to examine multiple simultaneous auctions using traditional math...