We propose a duopoly model of competition between internet search engines endowed with different technologies and study the effects of an agreement where the more advanced firm shares its technology with the inferior one. We show that the superior firm enters the agreement only if it results in...

The phenomenon of paid search advertising has now become the most predominant form of online advertising in the marketing world. However, we have little understanding of the impact of search engine advertising on consumers' responses in the presence of organic listings of the same firms. In this...

Keyword auctions are another multi-billion dollar application of auctions after the celebrated eBay-like business-to-consumer auctions in electronic commerce. Inevitably, keyword auctions have recently gained attention among researchers. Questions regarding what (is keyword auction), why (we...

The use of search engines has become almost as important as e-mail as a primary online activity. Arguably, search engines are among the most important gatekeepers in today's digitally networked environment. Thus, it does not come as a surprise that the evolution of search technology and the...

On search keywords with trademarked terms, the brand owner (“focal brand”) and other relevant firms compete for consumers. For the focal brand, paid clicks have a direct substitute in the organic links below the paid ad(s). The proximity of this substitute depends on whether competing firms...

In sponsored search advertising, advertisers bid to be displayed in response to a keyword search. The operational activities associated with participating in an auction — submitting the bid and the ad copy, customizing bids and ad copies based various factors (such as the geographical region...

As sponsored search becomes increasingly important as an advertising medium for firms, search engines are exploring more advanced bidding and ranking mechanisms to increase their revenue from auctions for sponsored search advertising. For instance, Google, Yahoo! and Bing are experimenting with...

Our main objective in this paper is to measure the value of customers acquired from Google search advertising accounting for two factors that have been overlooked in the conventional method widely adopted in the industry: the spillover effect of search dvertising on customer acquisition and...

We investigate the VCG mechanism to which the locally envy-free Nash equilibria (LEFNE), vindictive bidding, and retaliating are applied. In order to evaluate performances of different bidding strategies with which an advertiser will acquire the same position, we define a novel so-called...

Google's new “Interest Based Advertising” (IBA) program represents the company's first foray into what is generally called “Online Behavioral Advertising”: In order to deliver more relevant advertising, Google will begin tailoring ads delivered through AdSense on the Google Content...