Online Auction and List Price Revenue Management

Online Auction and List Price Revenue Management

W analyze a revenue management problem in which a seller facing a Poisson arrival stream of consumers operates an online multiunit auction. Consumers can get the product from an alternative list price channel. We consider two variants of this problem: In the first variant, the list price is an external channel run by another firm. In the second one, the seller manages both the auction and the l...

Electronic Companion — “ Online Auction and List Price Revenue Management ” by René Caldentey and Gustavo Vulcano , Management Science 2007 , 53

which proves (8). From this last inequality, it follows that the right-hand side hH v is the natural candidate for best-response strategy for buyer with valuation v > P . However, for an arbitrary H ∈ , hH v is not guaranteed to be nonnegative, and so hH is not necessarily a well-defined participation strategy in . Fortunately, note that we can correct this problem by simply setting the best-re...

X Revenue Optimization in the Generalized Second-Price Auction

In this paper, we consider the question of how to optimize revenue in advertising auctions without changing away from the generalized second-price paradigm that has become the de facto standard. We consider several different GSP variants (including squashing and different types of reserve prices), and how to set their parameters optimally. Our main finding is that unweighted reserve prices (i.e...

Online Auction Site Management

An Adaptive Online Ad Auction Scoring Algorithm for Revenue Maximization

Sponsored search becomes an easy platform to match potential consumers' intent with merchants' advertising. Advertisers express their willingness to pay for each keyword in terms of bids to the search engine. When a user's query matches the keyword, the search engine evaluates the bids and allocates slots to the advertisers that are displayed along side the unpaid algorithmic search results. Th...