Web Site Usability, Design, and Performance Metrics
Information Systems Research
Frictionless Commerce? A Comparison of Internet and Conventional Retailers
Management Science
INFORMS Journal on Computing
The Impact of E-Commerce on Competition in the Retail Brokerage Industry
Information Systems Research
Proceedings of the 8th ACM conference on Electronic commerce
An empirical analysis of paid placement in online advertising
Proceedings of the ninth international conference on Electronic commerce
A Model of Search Intermediaries and Paid Referrals
Information Systems Research
Research Commentary---Sponsored Search and Market Efficiency
Information Systems Research
Adverse selection in online "trust" certifications and search results
Electronic Commerce Research and Applications
A “Position Paradox” in Sponsored Search Auctions
Marketing Science
Cyclical Bid Adjustments in Search-Engine Advertising
Management Science
Pricing and bidding strategy in adwords auction under heterogeneous products scenario
ICSI'10 Proceedings of the First international conference on Advances in Swarm Intelligence - Volume Part II
Research Note---Performance-Based Advertising: Advertising as Signals of Product Quality
Information Systems Research
Learning to predict the cost-per-click for your ad words
Proceedings of the 21st ACM international conference on Information and knowledge management
Social Media and Firm Equity Value
Information Systems Research
Optimal keyword auctions for optimal user experiences
Decision Support Systems
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Online sponsored search advertising has emerged as the dominant online advertising format largely because of their pay-for-performance nature, wherein advertising expenditures are closely tied to outcomes. While the pay-for-performance format substantially reduces the wastage incurred by advertisers compared to traditional pay-per-exposure advertising formats, the reduction of such wastage also carries the risk of reducing the signaling properties of advertising. Lacking a separating equilibrium, low-quality firms in these markets may be able to mimic the advertising strategies of high-quality firms. This study examines this issue in the context of online sponsored search markets. Using data gathered from sponsored search auctions for keywords in a market without intervention by the intermediary, we find evidence of adverse selection for products/services characterized by high uncertainty. On the other hand, there is no evidence of adverse selection for similar products in a regulated sponsored search market, suggesting that intervention by the search intermediary can have a significant impact on market outcomes and consumer welfare.