Externalities in online advertising
Proceedings of the 17th international conference on World Wide Web
Externalities in Keyword Auctions: An Empirical and Theoretical Assessment
WINE '09 Proceedings of the 5th International Workshop on Internet and Network Economics
Proceedings of the 20th international conference on World wide web
Money for nothing: exploiting negative externalities
Proceedings of the 12th ACM conference on Electronic commerce
Computing optimal outcomes under an expressive representation of settings with externalities
Journal of Computer and System Sciences
Sponsored search auctions with conflict constraints
Proceedings of the fifth ACM international conference on Web search and data mining
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"North" ads, or sponsored listings appearing just above the organic search results, generate the majority of clicks and revenues for search engines. In this paper, we ask whether the competing north ads exert externalities on each other. In particular, does increasing the number of rival north ads decrease the number of clicks I receive on my own north ad? We conduct a controlled experiment to investigate this question and find, to our surprise, that additional rival ads in the north tend to increase rather than decrease the click-through rate (CTR) of the top sponsored listing. We propose several possible explanations for this phenomenon, and point out directions for new theoretical models of sponsored search.