In this Google Tech Talks video, “How to Slice the Pie? Optimal Share Structure Design in Internet Advertising Auctions,” IROM Professor and Director of the Center for Research in Electronic Commerce Andrew B. Whinston explores the share auction model that Google uses to allocate its internet advertising resources.
In the Google model, the highest advertiser gets the largest share, the second highest advertiser gets the second largest share, and so on. Whinston discusses the complexities and challenges of the share auction.
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