In this paper, we investigate an incomplete information model of generalized second price auctionswith allocative externalities originating from the heterogeneous match rates of bidders. A novel featureof our model is that it generates endogenous click-through rates (CTRs). In this setting, we establishexistence of symmetric efficient equilibria for common classes of primitives. This contrasts with thefindings of Gomes and Sweeney (2014), who study a similar model but with fixed CTRs. Moreover, non-existence results require strong assumptions on the primitives of the model. We conclude that existence of equilibria in GSP with incomplete information is quite general.
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