Keyword advertising, or "sponsored links" that appear alongside online search results or other online content, has grown into a multibillion-dollar market. Providers of keyword advertising, such as Google and Yahoo!, profit by auctioning keywords to advertisers. One issue of increasing...

We introduce a new ascending auction that allocates heterogeneous objects among bidders with purely private unit demands. Our auction design differs from existing dynamic auctions in a number of ways: it economizes on information solicited from bidders by requiring marginal bidders to reveal a...

Motivated by challenges facing IT procurement, this paper studies a hybrid procurement model where a reverse auction of a fixed-price IT outsourcing contract may be followed by renegotiation to extend the contract's scope. In this model, the buyer balances the need to incentivize...

Motivated by bidders' interests in concealing their private information in auctions, we propose an ascending clock auction for unit-demand assignment problems that economizes on bidder information revelation, together with a new general-purpose measure of information revelation. Our auction uses...

Poor user experiences with search advertisements can lead to ad avoidance thus reduce search engine’s long-term revenue. We capture the effect of negative user experiences on search engine’s future revenue in a new variable called “shadow costs” and examine the optimal keyword auction...