46 research outputs found

    Keyword Competition and Determinants of Ad Position in Sponsored Search Advertising

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    Given the significant growth of the Internet in recent years, marketers have been striving for new techniques and strategies to prosper in the online world. Statistically, search engines have been the most dominant channels of Internet marketing in recent years. However, the mechanics of advertising in such a market place has created a challenging environment for marketers to position their ads among their competitors. This study uses a unique cross-sectional dataset of the top 500 Internet retailers in North America and hierarchical multiple regression analysis to empirically investigate the effect of keyword competition on the relationship between ad position and its determinants in the sponsored search market. To this end, the study utilizes the literature in consumer search behavior, keyword auction mechanism design, and search advertising performance as the theoretical foundation. This study is the first of its kind to examine the sponsored search market characteristics in a cross-sectional setting where the level of keyword competition is explicitly captured in terms of the number of Internet retailers competing for similar keywords. Internet retailing provides an appropriate setting for this study given the high-stake battle for market share and intense competition for keywords in the sponsored search market place. The findings of this study indicate that bid values and ad relevancy metrics as well as their interaction affect the position of ads on the search engine result pages (SERPs). These results confirm some of the findings from previous studies that examined sponsored search advertising performance at a keyword level. Furthermore, the study finds that the position of ads for web-only retailers is dependent on bid values and ad relevancy metrics, whereas, multi-channel retailers are more reliant on their bid values. This difference between web-only and multi-channel retailers is also observed in the moderating effect of keyword competition on the relationships between ad position and its key determinants. Specifically, this study finds that keyword competition has significant moderating effects only for multi-channel retailers

    Essays on Auction Design

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    This dissertation studies the design of auction markets where bidders are uncertain of their own values at the time of bidding. A bidder's value may depend on other bidders' private information, on total quantity of items allocated in the auction, or on the auctioneer's private information. Chapter 1 provides a brief introduction to auction theory and summarizes the main contribution of each following chapter. Chapter 2 of this dissertation extends the theoretical study of position auctions to an interdependent values model in which each bidder's value depends on its opponents' information as well as its own information. I characterize the equilibria of three standard position auctions under this information structure, including the Generalized Second Price (GSP) auctions, Vickrey-Clarke-Groves (VCG) auctions, and the Generalized English Auctions (GEA). I first show that both GSP and VCG auctions are neither efficient nor optimal under interdependent values. Then I propose a modification of these two auctions by allowing bidders to condition their bids on positions to implement efficiency. I show that the modified auctions proposed in this chapter are not only efficient, but also maximize the search engine's revenue. While the uncertainty of each bidder about its own value comes from the presence of common component in bidders’ ex-post values in an interdependent values model, bidders can be uncertain about their values when their values depend on the entire allocation of the auction and when their values depend on the auctioneer's private information. Chapter 3 of this dissertation studies the design of efficient auctions and optimal auctions in a license auction market where bidders care about the total quantity of items allocated in the auction. I show that the standard uniform-price auction and the ascending clock auction are inefficient when the total supply needs to be endogenously determined within the auction. Then I construct a multi-dimensional uniform-price auction and a Walrasian clock auction that can implement efficiency in a dominant strategy equilibrium under surplus-maximizing reserve prices and achieve optimal revenue under revenue-maximizing reserve prices. Chapter 4 of this dissertation analyzes an auctioneer's optimal information provision strategy in a procurement auction in which the auctioneer has private preference over bidders' non-price characteristics and bidders invest in cost-reducing investments before entering the auction. I show that providing more information about the auctioneer's valuation over bidders' non-price characteristics encourages those favored bidders to invest more and expand the distribution of values in the auction. Concealment is the optimal information provision policy when there are two suppliers

    Achieving broad access to satellite control research with zero robotics

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    Thesis (Ph. D.)--Massachusetts Institute of Technology, Dept. of Aeronautics and Astronautics, 2013.This thesis was scanned as part of an electronic thesis pilot project.Cataloged from PDF version of thesis.Includes bibliographical references (p. 307-313).Since operations began in 2006, the SPHERES facility, including three satellites aboard the International Space Station (ISS), has demonstrated many future satellite technologies in a true microgravity environment and established a model for developing successful ISS payloads. In 2009, the Zero Robotics program began with the goal of leveraging the resources of SPHERES as a tool for Science, Technology, Engineering, and Math education through a unique student robotics competition. Since the first iteration with two teams, the program has grown over four years into an international tournament involving more than two thousand student competitors and has given hundreds of students the experience of running experiments on the ISS. Zero Robotics tournaments involve an annually updated challenge motivated by a space theme and designed to match the hardware constraints of the SPHERES facility. The tournament proceeds in several phases of increasing difficulty, including a multi-week collaboration period where geographically separated teams work together through the provided tools to write software for SPHERES. Students initially compete in a virtual, online simulation environment, then transition to hardware for the final live championship round aboard the ISS. Along the way, the online platform ensures compatibility with the satellite hardware and provides feedback in the form of 3D simulation animations. During each competition phase, a continuous scoring system allows competitors to incrementally explore new strategies while striving for a seat in the championship. This thesis will present the design of the Zero Robotics competition and supporting online environment and tools that enable users from around the world to successfully write computer programs for satellites. The central contribution is a framework for building virtual platforms that serve as surrogates for limited availability hardware facilities. The framework includes the elaboration of the core principles behind the design of Zero Robotics along with examples and lessons from the implementation of the competition. The virtual platform concept is further extended with a web-based architecture for writing, compiling, simulating, and analyzing programs for a dynamic robot. A standalone and key enabling component of the architecture is a pattern for building fast, high fidelity, web-based simulations. For control of the robots, an easy to use programming interface for controlling 6 degree-of-freedom (6DOF) satellites is presented, along with a lightweight supervisory control law to prevent collisions between satellites without user action. This work also contributes a new form of student robotics competition, including the unique features of model-based online simulation, programming, 6DOF dynamics, a multi-week team collaboration phase, and the chance to test satellites aboard the ISS. Scoring during the competition is made possible by possible by a game-agnostic scoring algorithm, which has been demonstrated during a tournament season and improved for responsiveness. Lastly, future directions are suggested for improving the tournament including a detailed initial exploration of creating open-ended Monte Carlo analysis tools.by Jacob G. Katz.Ph.D

    Position Auctions with Consumer Search

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    This paper examines a model in which advertisers bid for "sponsored-link" positions on a search engine. The value advertisers derive from each position is endogenized as coming from sales to a population of consumers who make rational inferences about rm qualities and search optimally. Consumer search strategies, equilibrium bidding, and the welfare benefits of position auctions are analyzed. Implications for reserve prices and a number of other auction design questions are discussed.National Science Foundation (U.S.) (grant SES-0550897)National Science Foundation (U.S.) (grant SES-0351500)Toulouse Network for Information Technolog

    A study of matching mechanisms.

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    Liu, Jian.Thesis (M.Phil.)--Chinese University of Hong Kong, 2010.Includes bibliographical references (p. 86-91).Abstracts in English and Chinese.Chapter 1 --- Introduction of Matching Mechanisms --- p.1Chapter 1.1 --- Background for College Admissions Problem --- p.1Chapter 1.2 --- Background for Internet Advertising Market --- p.3Chapter 2 --- Application I: College Admissions Problem Revisited --- p.6Chapter 2.1 --- Three Basic Mechanisms --- p.6Chapter 2.1.1 --- Boston Mechanism --- p.7Chapter 2.1.2 --- Gale-Shapley Student Optimal Mechanism --- p.9Chapter 2.1.3 --- Top Trading Cycles Mechanism --- p.11Chapter 2.2 --- College Admissions Mechanisms Around the World --- p.12Chapter 2.2.1 --- Serial Dictatorship in Turkey --- p.13Chapter 2.2.2 --- JUPAS in Hong'Kong SAR --- p.14Chapter 2.2.3 --- College Admissions in Mainland China --- p.16Chapter 2.3 --- Generalized Model for College Admissions: JUPAS Revisited --- p.19Chapter 2.4 --- Extension to Marriage Problem --- p.23Chapter 2.5 --- Strategy Analysis in Extended Marriage Problem --- p.27Chapter 2.6 --- Strategy Analysis in JUPAS --- p.30Chapter 2.7 --- Efficiency Investigation via Simulation --- p.33Chapter 2.7.1 --- Efficiency Definition --- p.33Chapter 2.7.2 --- Simulation Design --- p.36Chapter 2.7.3 --- Simulation Results --- p.38Chapter 3 --- Application II: Search Engines Market Model --- p.42Chapter 3.1 --- The Monopoly Market Model --- p.42Chapter 3.1.1 --- The Ex Ante Case --- p.43Chapter 3.1.2 --- The Ex Post Case --- p.45Chapter 3.1.3 --- Formulated As An Optimization Problem --- p.51Chapter 3.2 --- The Duopoly Market Model --- p.54Chapter 3.2.1 --- Competition for End Users in Stage I --- p.54Chapter 3.2.2 --- Competition for Advertisers in Stage II and III --- p.57Chapter 3.2.3 --- Comparison of Competition and Monopoly --- p.65Chapter 3.3 --- Numerical Results and Observations --- p.70Chapter 3.3.1 --- Baseline Setting --- p.71Chapter 3.3.2 --- Effect of Supplies --- p.74Chapter 3.3.3 --- Effect of Discount Factors --- p.75Chapter 4 --- Related Work --- p.78Chapter 5 --- Summary and Future Directions --- p.83Bibliography --- p.8

    Advanced Process Monitoring for Industry 4.0

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    This book reports recent advances on Process Monitoring (PM) to cope with the many challenges raised by the new production systems, sensors and “extreme data” conditions that emerged with Industry 4.0. Concepts such as digital-twins and deep learning are brought to the PM arena, pushing forward the capabilities of existing methodologies to handle more complex scenarios. The evolution of classical paradigms such as Latent Variable modeling, Six Sigma and FMEA are also covered. Applications span a wide range of domains such as microelectronics, semiconductors, chemicals, materials, agriculture, as well as the monitoring of rotating equipment, combustion systems and membrane separation processes

    Sensor Location For Network Flow And Origin-Destination Estimation With Multiple Vehicle Classes

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    The need for multi-class origin-destination (O-D) estimation and link volume estimation requires multi-class observations from sensors. This dissertation has established a new sensor location model that includes: 1) multiple vehicle classes; 2) a variety of data types from different types of sensors; and 3) a focus on both link-based and O-D based flow estimation. The model seeks a solution that maximizes the overall information content from sensors, subject to a budget constraint. An efficient twophase metaheuristic algorithm is developed to solve the problem. The model is based on a set of linear equations that connect O-D flows, link flows and sensor observations. Concepts from Kalman filtering are used to define the information content from a set of sensors as the trace of the posterior covariance matrix of flow estimates, and to create a linear update mechanism for the precision matrix as new sensors are added or deleted from the solution set. Sensor location decisions are nonlinearly related to information content because the precision matrix must be inverted to construct the covariance matrix which is the basis for measuring information. The resulting model is a nonlinear knapsack problem. The two-phase search algorithm proposed addresses this nonlinear, nonseparable integer sensor location problem. A greedy phase generates an initial solution, feeding into a Tabu Search phase which swaps sensors along the budget constraint. The neighbor generation in Tabu search is a combination of a fixed swapout strategy with a guided random swap-in strategy. Extensive computational experiments have been performed on a standard test network. These tests verify the effectiveness of the problem formulation and solution algorithm. A case study on Rockland County, NY demonstrates that the sensor location method developed in this dissertation can successfully allocate sensors in realistic networks, and thus has significant practical value
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