Department of Economics
Royal Holloway, University of London
Egham, Surrey, TW20 0EX
Institutional Affiliation: Univ. of Chicago
NBER Working Papers and Publications
|October 2017||Marketing Agencies and Collusive Bidding in Online Ad Auctions|
with Francesco Decarolis, Antonio Penta: w23962
The transition of the advertising market from traditional media to the internet has induced a proliferation of marketing agencies specialized in bidding in the auctions that are used to sell ad space on the web. We analyze how collusive bidding can emerge from bid delegation to a common marketing agency and how this can undermine the revenues and allocative efficiency of both the Generalized Second Price auction (GSP, used by Google and Microsoft-Bing and Yahoo!) and the VCG mechanism (used by Facebook). We find that, despite its well-known susceptibility to collusion, the VCG mechanism outperforms the GSP auction both in terms of revenues and efficiency.
|July 2008||E-commerce and the Market Structure of Retail Industries|
with Ali Hortacsu, Chad Syverson, Onsel Emre: w14166
While a fast-growing body of research has looked at how the advent and diffusion of e-commerce has affected prices, much less work has investigated e-commerce's impact on the number and type of producers operating in an industry. This paper theoretically and empirically takes up the question of which businesses most benefit and most suffer as consumers switch to purchasing products online. We specify a general industry model involving consumers with differing search costs buying products from heterogeneous-type producers. We interpret e-commerce as having reduced consumers' search costs. We show how such reductions reallocate market shares from an industry's low-type producers to its high-type businesses. We test the model using U.S. data for three industries in which e-commerce has arguab...
Published: Maris Goldmanis & Ali Hortaçsu & Chad Syverson & Önsel Emre, 2010.
"E-Commerce and the Market Structure of Retail Industries,"
Royal Economic Society, vol. 120(545), pages 651-682, 06.
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