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Sponsored search advertisements are an essential component of e-marketing strategies and a substantial source of revenue for search engines. Most sponsored ads are sold through keyword auctions. We analyze a game-theoretic model to explore the impact of organic links (links generated by the...
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This paper presents an empirical model of sponsored search auctions where advertisers are ranked by bid and ad quality. Our model is developed under the 'incomplete information' setting with a general quality scoring rule. We establish nonparametric identification of the advertiser's valuation...
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intensifies price competition. However, a profit-maximizing search engine imposes a distortion by charging too high an advertising …
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