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Transparent Marketplaces: It’s All About the School LunchGabriel Weintraub, Chief Economist, AppNexus

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School Lunches in Chile in the 1990s

Source: Photo, “Combinatorial Auctions”, Analytics Magazine, Fall 2009

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CHILE 1973 1989 1999-2001

Military coup: beginning of dictatorship

Transition to democracy

Huge public spending & free market economy

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The ChallengeFeeding >2M Children Daily

Thousandsof schools

Tens of vendors & companies

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The IssuesNo standardization of menus & quality Lack of price

competition

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• Standardized meals & quality • Created price competition• Auction logic

Solution: Transparent Competitive Bid Auction

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SAVED 20-25%ALLOWING

TO FEED TH E G O V E R N M E N T

300,000+DAILY

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Transparency& Science

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WHYdid I become interested in this market?

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Using cutting edge economic science to address…

TRANSPARENCY + REVENUES

SENSIBLE AUCTION LOGIC

FOR HEADER BIDDING

OVERARCHING MARKET

DYNAMICS

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Thank you!