Reserve Prices in Internet Advertising Auctions: A Field Experiment

Reserve Prices in Internet Advertising Auctions: A Field Experiment

We present the results of a large field experiment on setting reserve prices in auctions for online advertisements, guided by the theory of optimal auction design suitably adapted to the sponsored search setting. Consistent with the theory, revenues increased substantially after the new reserve pric...

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Veröffentlicht in:The Journal of political economy 2023-12, Vol.131 (12), p.3352-3376
Hauptverfasser: Ostrovsky, Michael, Schwarz, Michael
Format: Artikel
Sprache:eng
Schlagworte:
Advertisements
Auctions
Economic theory
Online advertising
Political economy
Prices
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Zusammenfassung:We present the results of a large field experiment on setting reserve prices in auctions for online advertisements, guided by the theory of optimal auction design suitably adapted to the sponsored search setting. Consistent with the theory, revenues increased substantially after the new reserve prices were introduced.
ISSN:0022-3808
1537-534X
DOI:10.1086/725702