Competition and Fraud in Online Advertising Markets

Authors:
Bob Mungamuru;Stephen Weis
Affiliations:
Stanford University, Stanford, USA 94305;Google Inc., Mountain View, USA 94043
Venue:
Financial Cryptography and Data Security
Year:
2008

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Abstract

An economic model of the online advertising market is presented, focusing on the effect of ad fraud. In the model, the market is comprised of three classes of players: publishers, advertising networks, and advertisers. The central question is whether ad networks have an incentive to aggressively combat fraud. The main outcome of the model is to answer this question in the affirmative.