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Is it safer to raise prices in a thick auction?
The discussion around raising prices in a thick auction indicates a belief that it may be safer than in a thin auction. Dr. Juda mentioned that thicker auctions could approach the 'actual' value of clicks, while thin auctions risk exceeding true value, which implies a level of uncertainty in setting prices systematically[1].
Conversely, Google analyzed different pricing mechanisms to potentially raise prices through their project Momiji, assessing how they could raise revenue by combining various pricing strategies. They noted that raising format pricing and implementing 'squashing' could effectively increase prices by up to 15 percent[2].
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