Position auctions with dynamic resizing

Patrick Hummel

International Journal of Industrial Organization, 2016, vol. 45, issue C, 38-46

Abstract: This paper analyzes mechanisms for selling advertising inventory in a position auction in which displaying less than the maximal number of ads means the ads that are shown can be dynamically resized and displayed more prominently. I characterize the optimal mechanism with and without dynamic resizing, and illustrate how the optimal reserve prices in a Vickrey–Clarke–Groves mechanism vary with the amount of dynamic resizing and the number of bidders.

Keywords: Position auctions; Dynamic resizing; Reserve prices; Mechanism design; Online advertising; Vickrey–Clarke–Groves (search for similar items in EconPapers)
JEL-codes: D44 D47 D82 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:indorg:v:45:y:2016:i:c:p:38-46

DOI: 10.1016/j.ijindorg.2015.12.002

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