The way to handle reserve prices is to assume that the seller (in the case of search ads, the search enginer). is also bidding--with the minimum (reserve) prices.
If the seller wins, then basically that means there are no bids from others that the seller is willing to take (and so basically the item is not sold).
On Tue, Nov 8, 2011 at 7:23 PM, shubhendra singh <Shubhendra.Singh@asu.edu> wrote:
In vickrey second auction, is minimum pricing of an item done? I mean for lets say query/keywords, we know the number of hits, we (thinking of we as search engine), we already know how important this query is, Do we decide the minimum quotation for it?
From: Subbarao Kambhampati <firstname.lastname@example.org>
To: Rao Kambhampati <email@example.com>
Sent: Tuesday, 8 November 2011 7:10 PM
Subject: questions about today's class
folksI couldn't call on several raised hands today. If you remember your questions, feel free to ask me by email andI will respond.(and if I think the question is of general interest I will post my answer to the blog too)rao