Wilbur, Kenneth C.; Zhu, Yi - In: Marketing Science 28 (2009) 2, pp. 293-308
is in a search engine's interest to allow some click fraud. Under full information in a second-price auction, if % of … clicks are fraudulent, advertisers will lower their bids by %, leaving the auction outcome and search engine revenues … unchanged. However, if we allow for uncertainty in the amount of click fraud or change the auction type to include a click …