Question: 1. Suppose a search engine has three ad slots to sell. Slot A has a clickthrough rate of 1, slot B has a clickthrough rate

1. Suppose a search engine has three ad slots to sell.

1. Suppose a search engine has three ad slots to sell. Slot A has a clickthrough rate of 1, slot B has a clickthrough rate of 5, and slot C has a clickthrough rate of 10. There are three advertisers who are interested in these slots. Advertiser X values clicks at $4 per click, advertiser Y values clicks at $9 per click, and advertiser Z values clicks at $3 per click. a. Compute the socially optimal allocation of slots to advertisers and the VCG price for each slot. Show all your work. 13. Compute the socially optimal allocation ofslots to advertisers and the GSP price for each slot. Show all your work

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