nep-mkt New Economics Papers
on Marketing
Issue of 2019‒04‒29
two papers chosen by
Marco Novarese
Università del Piemonte Orientale

  1. Marketing agencies and collusive bidding in online ad auctions By Francesco Decarolis; Maris Goldmanis; Antonio Penta
  2. Market Segments in the Fresh Balaton Tart Cherry Market in Michigan By Lagoudakis, Angelos; Behe, Bridget; Malone, Trey

  1. By: Francesco Decarolis; Maris Goldmanis; Antonio Penta
    Abstract: The transition of the advertising market from traditional media to the internet has induced a proliferation of marketing agencies specialized in bidding in the auctions that are used to sell ad space on the web. We analyze how collusive bidding can emerge from bid delegation to a common marketing agency and how this can undermine the revenues and allocative efficiency of both the Generalized Second Price auction (GSP, used by Google and Microsoft-Bing and Yahoo!) and the of VCG mechanism (used by Facebook). We find that, despite its well-known susceptibility to collusion, the VCG mechanism outperforms the GSP auction both in terms of revenues and efficiency.
    Keywords: Collusion, digital marketing agencies, facebook, google, GSP, internet auctions, online advertising, VCG
    JEL: C72 D44 L81
    Date: 2019–04
  2. By: Lagoudakis, Angelos; Behe, Bridget; Malone, Trey
    Abstract: While many studies have focused on consumer preferences for specialty crops, few have focused on tart cherries. This article uses data collected from 134 Michigan tart cherry consumers to identify potential market segments through consumers’ consumption frequency of fresh Balaton tart cherries. We use k-means cluster analysis to describe Balaton tart cherry market segments. Our analysis suggests that fresh and frozen tart cherry consumers do not commonly overlap and that fresh Balaton consumers are generally unique relative to other tart cherry consumers. Overall, this article provides a first step toward understanding consumer demographics for tart cherries.
    Keywords: Consumer/Household Economics, Marketing
    Date: 2019–04–16

This nep-mkt issue is ©2019 by Marco Novarese. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.