Introduction This is a simple post about some commonly known features of online ad auctions. Generalized second-price auction (GSP) is a mechanism in which the advertiser pays a marginally higher bid than the advertiser losing to him. It encourages the bidder to place a truthful bid, i.e. one where the price level is such that […]
Joni SalminenAssociate Professor (tenure track) at the University of Vaasa, and Adjunct Professor at the Turku School of Economics.