Informs Today: The Podcast Series

Moving to a pay per click system in online advertising, especially if that means pay per sale, was meant to reduce the cost of ads and make the whole system more efficient. Then why does the system actually lower revenue and profits? In his June, 2012 study in the INFORMS journal Management Science, Chrysanthos Dellarocas of Boston University explains the phenomenon of double marginalization - and how he would fix it.