Google’s AdWords Auctions
In this week’s issue of BusinessWeek (March 6, 2006), an article called The secret to Google’s success describes a study by three economists showing that Google’s mechanism for auctioning ad space (called AdWords), which is supposed to be a second-price auction, actually “differs in a key respect from the one economists had studied”. I tracked down a report on this study (“The high price of internet keyword auctions” by Edelman, Ostrovsky, and Schwarz) to find out more. And I found out something that is directly related to our work on eBay auctions… Starting from the basics, a second-price auction is … Continue reading Google’s AdWords Auctions