The Pay per Click Paradox Chrysanthos Dellarocas, Boston University
Moving to a pay per click system in online advertising, especially if that means pay per sale, was meant to reduce the cost of ads and make the whole system more efficient. Then why does the system actually lower revenue and profits? In his June, 2012 study in the INFORMS journal Management Science, Chrysanthos Dellarocas of Boston University explains the phenomenon of double marginalization – and how he would fix it.
Please stay on topic, be civil, and be brief.
Email addresses are never displayed, but they are required to confirm your comments. Names are displayed with all comments. INFORMS reserves the right to edit any comments posted on this site.