On the strategic use of quality scores in keyword auctions: Full extraction of advertisers’ surplus
نویسنده
چکیده
This paper shows that the quality scores in keyword auctions can be strategically chosen to extract all the advertisers’ surplus. The reason for the full extraction result is that the quality scores may effectively set all the bidders’ valuations equal to the highest valuation, which induces intense bidding competition. JEL classifications: D44; M37
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