An interesting feature of the data is that the price distribution in the absence of promotional activities first order stochastically dominates that under display or feature advertising. The theoretical model we introduce can yield an equilibrium that is consistent with the above observations

Frequent new product introductions and short product lifecycles lead to unusually high levels of advertising in the movie industry. We study the effectiveness of television advertisements aired after the theatrical opening of a motion picture (“post-release advertising”). We estimate an...