Position Auctions with Dynamic Resizing
Venue
International Journal of Industrial Organization, vol. 45 (2016), pp. 38-46
Publication Year
2016
Authors
BibTeX
Abstract
This paper analyzes mechanisms for selling advertising inventory in a position
auction in which displaying less than the maximal number of ads means the ads that
are shown can be dynamically resized and displayed more prominently. I characterize
the optimal mechanism with and without dynamic resizing, and illustrate how the
optimal reserve prices in a Vickrey–Clarke–Groves mechanism vary with the amount of
dynamic resizing and the number of bidders.
