Is Efficiency Expensive?

نویسندگان

  • Tim Roughgarden
  • Mukund Sundararajan
چکیده

We study the simultaneous optimization of efficiency and revenue in pay-per-click keyword auctions in a Bayesian setting. Our main result is that the efficient keyword auction yields near-optimal revenue even under modest competition. In the process, we build on classical results in auction theory to prove that increasing the number of bidders by the number of slots outweighs the benefit of employing the optimal reserve price.

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تاریخ انتشار 2007