Describe what happens if we run the procedure to compute market-clearing prices on the matching market you set up in a). Say what the prices are at the end of each round of the procedure, including what the final market-clearing prices are when the procedure comes to an end.

You can either draw the preferred-seller graph from each round, or it is also fine to simply list the prices for each seller at the end of each round of the procedure.

 

Give an explanation for why the site receiving the highest price is intuitively more "appealing" to the advertisers

Transcribed Image Text:

Demographic < < 30 30-45 > 45 Web site A F G 1/2 1/4 1/4 0 3/4 1/4 0 1/4 3/4 Demographic < < 30 30-45 > 45 Web site A F G 1/2 1/4 1/4 0 3/4 1/4 0 1/4 3/4