Question
1.We consider ads for a keyword. The search engine offers 2 links. The first link has a frequency of 350 clicks/day, and the second link
1.We consider ads for a keyword. The search engine offers 2 links. The first link has a frequency of 350 clicks/day, and the second link a click frequency of 290clicks/day. There are 2 bidders,A and B. Bidder A values the click at$6 and bidder B values the click at$4. Consider the following assignment: bidder A gets the first position and pays$3/click, while bidder B gets the second position and pays$1.5/click.Is this assignment stable? If not, identify a blocking pair (and explain why it is a blocking pair). If yes, justify your answers.
2.We consider ads for a keyword. The search engine offers 2 links.The first link has a frequency of 700 clicks/day, and the second link a click frequency of 360clicks/day. There are 2 bidders,A and B. BidderAvalues the click at$6 and bidder B values the click at$4. Consider the following assignment: bidder A gets the first position and pays$3/click, while bidder B gets the second position and pays$1.5/click.Is this assignment stable? If not, identify a blocking pair (and explain why it is a blocking pair). If yes, justify your answers
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