Abstract
Online publishers sell opportunities to show ads. Some advertisers pay only if their ad elicits a user response. Publishers estimate response rates for ads in order to estimate expected revenues from showing the ads. Then publishers select ads that maximize estimated expected revenue. By taking a maximum among estimates, publishers inadvertently select ads based on a combination of actual expected revenue and inaccurate estimation of expected revenue. Publishers can increase actual expected revenue by selecting ads to maximize a combination of estimated expected revenue and estimation accuracy.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 80-88 |
| Number of pages | 9 |
| Journal | International Journal of Industrial Organization |
| Volume | 30 |
| Issue number | 1 |
| DOIs | |
| State | Published - Jan 2012 |
| Externally published | Yes |
Keywords
- Auction
- Bias
- Prediction
- Reversion
- Validation
ASJC Scopus subject areas
- Industrial relations
- Aerospace Engineering
- Strategy and Management
- Industrial and Manufacturing Engineering
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