Adwords Questions To Hal Varian About Reserve Price & GSP
I sent this message to Hal Varian as a long shot hoping for an answer about Google Adwords. I would have been thrilled to get an answer, but I also knew it was a long shot.
Email to Hal Varian, Google’s Chief Economist
Chances are this message will be ignored, but I at least had to try. 🙂
First off, thank you for your very informative videos on Adwords. I wish there were more books like In the Plex; I loved the section on how Kamangar and Veach came up with their second price auction system. I’ve been hunting around for some answers to other questions I have about Adwords auction system, and can’t find anything that is clear. And I thought well, let me ask you!
Two questions about Adwords:
- How is the reserve price for the last place in an Adwords auction determined?
- How is GSP a better model than Vickrey for Adwords?
In general, all this digging I’ve been doing has been prompted by my trying to optimize keyword bids. Yet if GSP maintains efficiency, and I use Google Adword’s automated maximizer, is there any point to constantly adjusting bids? Your help shedding some light, or even giving me someone else to contact would be MOST appreciated.