Article ID: | iaor20115102 |
Volume: | 10 |
Issue: | 3 |
Start Page Number: | 261 |
End Page Number: | 270 |
Publication Date: | May 2011 |
Journal: | Journal of Revenue and Pricing Management |
Authors: | Kwon Changhyun |
Keywords: | management |
In this article, we study a balancing problem of web publishers for pay‐per‐view and pay‐per‐click contracts for online display advertising. Considering the details of contracts, we refine prior research results on the recommendation of optimal strategies. We examine the problem by formalizing a simple stochastic optimization problem for a single period of advertising contracts. We investigate how pricing and other contract components will affect the optimal display strategies analytically and numerically.