The aim of this paper is to measure the advertising effectiveness of two formats of on-line advertisements, namely, large-button advertisements and contextual advertisements, and to determine the factors which, on the basis of the reviewed literature, influence advertising effectiveness. The...

Drawing on the literature on online advertising, I argue that the fundamental economic difference between online and offline advertising is a substantial reduction in the cost of targeting. This cost reduction informs what I view as the main themes in the online advertising literature:...

A monopoly platform hosts advertisers who compete on a market for horizontally differentiated products. These products may be either mass market products that appeal broadly to the entire consumer population or niche products that are tailored to the tastes of some particular group. Consumers...

Clearinghouse models of online pricing---such as Varian (1980), Rosenthal (1980), Narasimhan (1988), and Baye-Morgan (2001)---view a price comparison site as an "information clearinghouse" where shoppers and loyals obtain price and product information to make online purchases. These models...