Keyword Search Advertising and Limited Budgets
نویسنده
چکیده
In keyword search advertising, many advertisers operate on a limited budget. Yet how limited budgets affect keyword search advertising has not been extensively studied. This paper offers an analysis of the generalized second-price auction with budget constraints. We find that the budget constraint may induce advertisers to raise their bids to the highest possible amount for two different motivations: to accelerate the elimination of the budget-constrained competitor as well as to reduce their own advertising cost. Thus, in contrast to the current literature, our analysis shows that both budget-constrained and unconstrained advertisers could bid more than their own valuation. We further extend the model to consider dynamic bidding and budget-setting decisions.
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ورودعنوان ژورنال:
- Marketing Science
دوره 34 شماره
صفحات -
تاریخ انتشار 2015