Catherine Tucker on online advertising and antitrust

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February 7, 2012

Catherine Tucker, Douglas Drane Career Development Professor in IT and Management, and Assistant Professor of Marketing at MIT’s Sloan School of Management, discusses her paper with Avi Goldfarb in the Journal of Competition Law and Economics entitled, Substitution Between Offline and Online Advertising Markets. According to Tucker, the FTC treats online advertising as a distinct market from offline advertising for antitrust purposes. She describes the study she and Goldfarb conducted, where they sought to determine whether online advertising could serve as a substitute for offline advertising. Tucker also discusses Google’s role in online advertising, how its auction mechanism affects pricing, and the difference between search advertising and display advertising. The conversation ends with a discussion on policy implications on how dominant players in online advertising should be viewed.

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