Each Thursday, the <italic>New York Times</italic> publishes a column called "Economic Scene" on page C2 of the Business Section. The authorship of the column rotates among four individuals: Alan Krueger, Virginia Postrel, Jeff Madrick, and the author. This essay is about how he came to be a columnist and how he...

This lecture provides an introduction to the economics of Internet search engines. After a brief review of the historical development of the technology and the industry, I describe some of the economic features of the auction system used for displaying ads. It turns out that some relatively...

We describe two auction forms for search engine advertising and present two simple theoretical results concerning i) the estimation of click-through rates and ii) how to adjust the auctions for broad match search. We also describe some of the practical issues involved in implementing a VCG auction.