Ad Auction Design and User Experience

When users click on poor quality advertisements, there is a hidden cost to the search engine due to the user dissatisfaction (for instance, users are less likely to click on ads in the future). We describe how to incorporate hidden costs into the GSP auction for internet ads such that it is in an advertiser’s self interest to create a user experience that maximizes efficiency.

• Type: Conference
• Year: 2007
• Where: WINE
• Authors: Zoë Abrams, Michael Schwarz
• Keywords: Economy, GSP Auction, Hidden Costs, User Dissatisfaction, WINE 2007