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Performance-primarily based advertising mechanisms induce firms to distort the costs of their goods (usually upwards) relative to costs that may maximize earnings in settings the place promoting is offered beneath established pay-per-impression methods. Upward worth distortions reduce both consumer surplus and the joint writer-advertiser profit, leading to a web reduction in social welfare. Dellarocas (2010) discusses a lot of methods through which performance-primarily based promoting mechanisms can be enhanced to restore environment friendly pricing.