We present a framework and empirical estimates that quantify the economic impact of increased product variety made available through electronic markets. Recent research has focused on the effect of increased competition on Internet market efficiency. While these efficiency gains significantly...

(cont.) provides explanations as to when and how incorporating them into advertising deals can be profitable. We argue that using these pricing models appropriately can give both the publisher and the advertiser proper incentives to make non-contractible efforts that may improve the...