Impatient Buyers and e-commerce Keyword Bidding

In today’s fast-paced e-commerce landscape, buyer impatience plays a crucial role in shaping the competitive dynamics between sellers and platforms. This project examines how characteristics of buyers, products, and market structure influence the equilibrium bid price in keyword auctions conducted by platforms like Google and Amazon. Focusing on the implications of buyer impatience, we explore how the value of top search result positions may increase and whether platforms can exploit this behavior for additional profits.