Does adding a zillion adsense boxes dilute my earning potential?

Q; Does adding a zillion adsense boxes dilute my earning potential?

From: deecee

I've been wondering about this. If CTR ad rates are based on
advertisers bidding, then will I effectively lower the bid rates by
adding too many adsense slots? The old supply & demand question... If I
supply too much, will demand fall, bringing prices down with it?
The reason I ask is that I have a large website (~700 pages). 99% of my
visitors go to one specific page, because it's ranked very high in the
search engines (it's #1 on google for its keyword).

So basically, I have one highly prized page and 699 fluff pages. If I
add adsense boxes to the other 699 pages, will it bring the
advertisers' bids down? I'd prefer to just keep the bid rates high,
even if that means just having one adsense box (on the "magic page")
because that's the only page of mine that really gets any traffic.

Answer - by Enviroman

Adsense Help has said that CTR does not affect earnings.

Answer - by deecee

well maybe I've got my terminology mixed up... I don't know if CTR is
the right word for what I'm talking about.
basically the advertisers bid on my adsense slots, right? so suppose
there are 100 advertisers and only 1 slot... then the bidding rate (my
earnings per click) will be high. But now if I have 100 slots, then the
rate will be low, because they're not competing against each other.

I don't know if that's how Google has set it up, but it seems to make
sense from an economics point of view.

Answer - by Enviroman

I don't know what you mean by slot. I am guessing you have a normal
website and can place ads on whatever position and whichever page you
chose, and that is a slot. But this is how I believe adsense works.
Adsense crawl your site to find out the content, and probably single
out some keywords. Advertiser bid on a keyword or keywords. There will
be more than one advertisers bidding on the same keyword. Adsense
program will try to match the highest bidder for the keyword and then
distribute it to those publishers who have pages with that keyword on
it. There probably also is a provision to distribute the ads such that
the higher bids get displayed in those positions that attract the most
clicks. If so, I don't see how having more "slots" can affect your bid
rate.