This paper presents a game theoretic analysis of the generalized second price auction that Yahoo operates to sell sponsored search listings on its search engine. We present results that indicate that this auction has a multiplicity of Nash equilibria. We also show that weak dominance arguments do not in general select a unique Nash equilibrium. We then analyze bid data assuming that advertisers...

The practice of sponsored search advertising—where advertisers pay a fee to appear alongside particular Web search results—is now one of the largest and fastest growing source of revenue for Web search engines. We model and compare several mechanisms for allocating sponsored slots, including stylized versions of those used by Overture and Google, the two biggest brokers of sponsored search. The...

Sponsored search accounts for 40% of the total online advertising market. These ads appear as ordered lists along with the regular search results in search engine results pages. The conventional wisdom in the industry is that the top position is the most desirable position for advertisers. This has led to intense competition among advertisers to secure the top positions in the results pages. We...

Sponsored search accounts for 40% of the total online advertising market. These ads appear as ordered lists along with the organic (regular) search results in search engine results pages. There is conflicting evidence regarding the impact of organic search results on the sponsored search especially when there is an overlap in the results. We evaluate the impact of advertiser’s link as well as t...

Sponsored search is an indispensable business model and a major revenue contributor of almost all the search engines. From the advertisers’ side, participating in ranking the search results by paying for the sponsored search advertisement to aŠract more awareness and purchase facilitates their commercial goal. From the users’ side, presenting personalized advertisement reƒecting their propensit...

Sponsored search auctions have attracted much research attention in recent years and different equilibrium concepts have been studied to understand advertisers’ bidding strategies. However, the assumption that bidders are perfectly rational in these studies is unrealistic in the real world. In this work, we investigate the quantal response equilibrium (QRE) solution concept for sponsored search...

T paper analyzes how the presence of organic listing as a competing information source affects advertisers’ sponsored bidding and the equilibrium outcomes in search advertising. We consider a game-theoretic model in which two firms bid for sponsored advertising slots provided by a monopolistic search engine and then compete for consumers in price in the product market. Firms are asymmetrically ...