Division of the Humanities and Social Sciences California Institute of Technology Pasadena, California 91125 to Score or Not to Score? Estimates of a Sponsored Search Auction Model
نویسندگان
چکیده
We estimate a structural model of a sponsored search auction model. To accommodate the “position paradox”, we relax the assumption of decreasing click volumes with position ranks, which is often assumed in the literature. Using data from “Website X”, one of the largest online marketplaces in China, we find that merchants of different qualities adopt different bidding strategies: high quality merchants bid more aggressively for informative keywords, while low quality merchants are more likely to be sorted to the top positions for vague keywords. Counterfactual evaluations show that the price trend becomes steeper after moving to a score-weighted generalized second price auction, with much higher prices obtained for the top position but lower prices for the other positions. Overall there is only a very modest change in total revenue from introducing popularity scoring, despite the intent in bid scoring to reward popular merchants with price discounts. JEL classification numbers: D44; D47; C11; C15
منابع مشابه
Division of the Humanities and Social Sciences California Institute of Technology Pasadena, California 91125 the Fcc Rules for the 700mhz Auction: a Potential Disaster
متن کامل
Division of the Humanities and Social Sciences California Institute of Technology Pasadena, California 91125 on Incentives and Updating in Agent Based Models
متن کامل
Division of the Humanities and Social Sciences California Institute of Technology Pasadena, California 91125 the Simultaneous Ascending Auction: Dynamics of Price Adjustment in Experiments and in the U.k. 3g Spectrum Auction
In this paper we develop a model of the behavior of bidders in simultaneous ascending auctions based on two principles: principle of surplus maximization and the principle of bid minimization. These principles lead to models of both price dynamics and equilibration, leading to disequilibrium structural equations that can be used for estimating bidder values. The intention behind the development...
متن کاملNber Working Paper Series Experimenting with Measurement Error: Techniques with Applications to the Caltech Cohort Study
Measurement error is ubiquitous in experimental work. It leads to imperfect statistical controls, attenuated estimated effects of elicited behaviors, and biased correlations between characteristics. We develop simple statistical techniques for dealing with experimental measurement error. These techniques are applied to data from the Caltech Cohort Study, which conducts repeated incentivized sur...
متن کامل