Designing online auctions with past performance information

De Liu; Jianqing Chen

doi:10.1016/j.dss.2005.10.012

Designing online auctions with past performance information

De Liu, Jianqing Chen

Information and Decision Sciences

Research output: Contribution to journal › Article › peer-review

47 Scopus citations

Abstract

We investigate the value of past performance information in the context of keyword advertising auctions, where advertisers differ both in valuation-per-click and in the numbers of clicks they can generate (their performance). We focus on weighted unit-price-contract (UPC) auctions, in which bidders bid unit prices and pay accordingly if they win, and their bids are weighted by factors based on their own past performance. We characterize the efficient and the revenue-maximizing weighting factors and apply our framework to study Yahoo!'s and Google's auction designs, each of which can be viewed as a special case of weighted UPC auctions.

Original language	English (US)
Pages (from-to)	1307-1320
Number of pages	14
Journal	Decision Support Systems
Volume	42
Issue number	3
DOIs	https://doi.org/10.1016/j.dss.2005.10.012
State	Published - Dec 1 2006

Keywords

Google
Keyword advertising
Multi-dimensional values
Search engine
UPC auctions

Access

10.1016/j.dss.2005.10.012

Fingerprint Dive into the research topics of 'Designing online auctions with past performance information'. Together they form a unique fingerprint.

Cite this

@article{a48a194cb240411ca2f393b484c2ec05,

title = "Designing online auctions with past performance information",

abstract = "We investigate the value of past performance information in the context of keyword advertising auctions, where advertisers differ both in valuation-per-click and in the numbers of clicks they can generate (their performance). We focus on weighted unit-price-contract (UPC) auctions, in which bidders bid unit prices and pay accordingly if they win, and their bids are weighted by factors based on their own past performance. We characterize the efficient and the revenue-maximizing weighting factors and apply our framework to study Yahoo!'s and Google's auction designs, each of which can be viewed as a special case of weighted UPC auctions.",

keywords = "Google, Keyword advertising, Multi-dimensional values, Search engine, UPC auctions",

author = "De Liu and Jianqing Chen",

year = "2006",

month = dec,

day = "1",

doi = "10.1016/j.dss.2005.10.012",

language = "English (US)",

volume = "42",

pages = "1307--1320",

journal = "Decision Support Systems",

issn = "0167-9236",

publisher = "Elsevier",

number = "3",

}

TY - JOUR

T1 - Designing online auctions with past performance information

AU - Liu, De

AU - Chen, Jianqing

PY - 2006/12/1

Y1 - 2006/12/1

N2 - We investigate the value of past performance information in the context of keyword advertising auctions, where advertisers differ both in valuation-per-click and in the numbers of clicks they can generate (their performance). We focus on weighted unit-price-contract (UPC) auctions, in which bidders bid unit prices and pay accordingly if they win, and their bids are weighted by factors based on their own past performance. We characterize the efficient and the revenue-maximizing weighting factors and apply our framework to study Yahoo!'s and Google's auction designs, each of which can be viewed as a special case of weighted UPC auctions.

AB - We investigate the value of past performance information in the context of keyword advertising auctions, where advertisers differ both in valuation-per-click and in the numbers of clicks they can generate (their performance). We focus on weighted unit-price-contract (UPC) auctions, in which bidders bid unit prices and pay accordingly if they win, and their bids are weighted by factors based on their own past performance. We characterize the efficient and the revenue-maximizing weighting factors and apply our framework to study Yahoo!'s and Google's auction designs, each of which can be viewed as a special case of weighted UPC auctions.

KW - Google

KW - Keyword advertising

KW - Multi-dimensional values

KW - Search engine

KW - UPC auctions

UR - http://www.scopus.com/inward/record.url?scp=33750482601&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=33750482601&partnerID=8YFLogxK

U2 - 10.1016/j.dss.2005.10.012

DO - 10.1016/j.dss.2005.10.012

M3 - Article

AN - SCOPUS:33750482601

VL - 42

SP - 1307

EP - 1320

JO - Decision Support Systems

JF - Decision Support Systems

SN - 0167-9236

IS - 3

ER -