Online Marketplace Advertising
نویسندگان
چکیده
This paper considers the allocation of “shelf space” in the context of online marketplaces, where items’ positions are linked to advertising. While featuring advertised products makes search less efficient, lowering transaction commissions, it incentivizes sellers to compete for better placements via advertising. We consider this trade-off by modeling both sides of the platform. On the demand side, we develop a joint model of search (impressions), consideration (clicks), and choice (demand). On the supply side, we consider sellers’ advertising competition under various fee structures and ranking
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