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Bernardo A. Huberman and Fang Wu
Information Dynamics Laboratory, HP Labs
Abstract
We analyze the problem that
enterprises face when having to decide on the most effective way to
advertise several items belonging to their inventories within the
company's webpages. We show that the ability to arbitrarily
partition a website among items leads to a comparative advantage
among webpages which can be exploited so as to maximize the total
utility of the enterprise. This result, which also applies to the
case of several competitive providers, is then extended to dynamical
scenarios where both the advertising allocation and the exposure
levels vary with time.
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