February 9, 2006
Michael Schwarz served as an Assistant Professor at Harvard Economics Department after earning a Ph.D. from Stanford Graduate School of Business. He is a member of the National Bureau of Economics Research. Dr. Schwarz specializes in economic theory and industrial organization and applications of theory to business decision making and public policy.
We investigate the “generalized second price” auction (GSP), a new mechanism which is used by search engines to sell online advertising that most Internet users encounter daily. GSP is tailored to its unique environment, and neither the mechanism nor the environment have previously been…