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We analyze a game‐theoretic model to explore the impact of organic links (links generated by the search engine algorithm) and popular versus niche keywords on bidding strategies in sponsored link position auctions. In contrast to results in earlier literature, we find that with organic links the firm with
dictionary. For these SVIs, we select keywords based on the correlation between weekly changes in the yen–dollar rate and the SVI. We use 30, 20, and 10 keywords that are replaced at three different frequencies: 3 months, 6 weeks, and weekly. The training period is from January 2013 to June 2015, and the forecast period is from
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