marketing expenditure. Although promotional activity is modelled as purely wasteful competition among firms for attention, it … are consistent with empirical evidence. First, if firms incur higher sunk costs for marketing, concentration and firm … become excessive, whereas being inefficiently low in the benchmark case without marketing. This has non-trivial consequences …

In the market where inattentive buyers can fail to notice some feasible choices, the key role of marketing is to make … buyers aware of products. However, the effective marketing strategy is often subtle since marketing tactics can make buyers … cautious. This paper provides a framework to analyze an effective marketing strategy to persuade an inattentive buyer in an …