The third essay considers the problem of selling internet advertising slots to advertisers. Under suitable conditions, we solve for the payments imposed by an optimal mechanism and show that it can be decentralized via prices using a linear assignment approach. At every configuration of private information, optimal mechanism can be interpreted as a menu consisting of a price for every slot.... Environment B, and we analyze the optimal mechanism design problem as a special case of the methods of Chapter 3. Although the assumptions we make in analyzing internet advertising are a compromise from generality, these assumptions are standard in the literature. ... For example Varian (2006) and Edelman et al.
|Title||:||Essays in Mechanism Design|
|Publisher||:||ProQuest - 2008|