Search Auctions

Bunch of companies had sponsored search auctions built, launched, and producing revenue before researchers in academia really helped understand what these systems do and their equilibrium properties. There are two good papers:

• Internet Advertising and the Generalized Second Price Auction: Selling Billions of Dollars Worth of Keywords B. Edelman, M. Ostrovsky and M. Schwarz
• Truthful Auctions for Pricing Search Keywords. Gagan Aggarwal, Ashish Goel and Rajeev Motwani, ACM Conference on Electronic Commerce (EC06), June 2006.

Enjoy!