Search advertising
Search engines enable advertisers to target consumers based on the query they have entered. In a framework with horizontal product differentiation, imperfect product information and in which consumers incur search costs, I study a game in which advertisers have to choose a price and a set of releva...
| Main Author: | |
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| Format: | Working paper |
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University of Oxford
2013
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| _version_ | 1797080411114831872 |
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| author | de Corniere, A |
| author_facet | de Corniere, A |
| author_sort | de Corniere, A |
| collection | OXFORD |
| description | Search engines enable advertisers to target consumers based on the query they have entered. In a framework with horizontal product differentiation, imperfect product information and in which consumers incur search costs, I study a game in which advertisers have to choose a price and a set of relevant keywords. The targeting mechanism brings about three kinds of efficiency gains, namely lower search costs, better matching, and more intense product market price-competition. A monopolistic search engine charges advertisers too high a price, and has incentives to provide a suboptimal matching quality. Competition among search engines eliminates the latter distortion, but exacerbates the former. |
| first_indexed | 2024-03-07T00:59:38Z |
| format | Working paper |
| id | oxford-uuid:89471c75-001c-4035-bcf2-f2f85e1bc621 |
| institution | University of Oxford |
| last_indexed | 2024-03-07T00:59:38Z |
| publishDate | 2013 |
| publisher | University of Oxford |
| record_format | dspace |
| spelling | oxford-uuid:89471c75-001c-4035-bcf2-f2f85e1bc6212022-03-26T22:23:20ZSearch advertisingWorking paperhttp://purl.org/coar/resource_type/c_8042uuid:89471c75-001c-4035-bcf2-f2f85e1bc621Bulk import via SwordSymplectic ElementsUniversity of Oxford2013de Corniere, ASearch engines enable advertisers to target consumers based on the query they have entered. In a framework with horizontal product differentiation, imperfect product information and in which consumers incur search costs, I study a game in which advertisers have to choose a price and a set of relevant keywords. The targeting mechanism brings about three kinds of efficiency gains, namely lower search costs, better matching, and more intense product market price-competition. A monopolistic search engine charges advertisers too high a price, and has incentives to provide a suboptimal matching quality. Competition among search engines eliminates the latter distortion, but exacerbates the former. |
| spellingShingle | de Corniere, A Search advertising |
| title | Search advertising |
| title_full | Search advertising |
| title_fullStr | Search advertising |
| title_full_unstemmed | Search advertising |
| title_short | Search advertising |
| title_sort | search advertising |
| work_keys_str_mv | AT decornierea searchadvertising |