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This paper shows how a firm can use non-targeted advertising to exploit consumers' desire for social status. A … monopolist sells multiple varieties of a good to consumers who each care about what others believe about his wealth. Advertising …
Persistent link: https://www.econbiz.de/10011257181
Advertising is commonly regarded as a strategic tool to increase demand and steal business from competitors. The … present work studies the competitive effects of advertising in a two-period game with incomplete information about the … the post-entry game is independent of the pre-entry advertising decision. Assuming that pre-entry advertising by an …
Persistent link: https://www.econbiz.de/10009372583
This paper shows how a firm can use non-targeted advertising to exploit consumers' desire for social status. A … monopolist sells multiple varieties of a good to consumers who each care about what others believe about his wealth. Advertising …
Persistent link: https://www.econbiz.de/10008838622
A durable experience good produced by a monopoly can be of either high or low quality. While some sonsumers are informed of the quality the others are not and have to infer quality through the marketing strategy of the firm. The model is a natural extension of Bagwell and Riordan.
Persistent link: https://www.econbiz.de/10005780813
advertising may affect consumer perferences. We illustrate the implications of our theory - an contrast with results from models … of informative advertising - by analysing the relationship between the degree of product differentiation and equilibrium … levels of advertising. The analysis suggests that an positive relationship between equilibrium levels of advertising and …
Persistent link: https://www.econbiz.de/10005652237
the same time,adware also raises privacy concerns. We study the effect of programmers'choice between shareware and adware …Programmers can distribute new software to online users either for a feeas shareware or bundle it with advertising … banners and distribute it forfree as adware. In this paper we study the programmers' choice betweenthese two modes of …
Persistent link: https://www.econbiz.de/10009435075
Planned shopping malls usually have one or more department stores (anchor stores) and multiple specialized retail stores in each commodity category. This paper presents a model of shopping malls in which these two types of stores sell noncomplementary commodities. If anchor stores sell standard...
Persistent link: https://www.econbiz.de/10005074094
We model the idea that when consumers search for products, they first visit the firm whose advertising is more salient …. The gains a firm derives from being visited early increase in search costs, so equilibrium advertising increases as search … heterogeneity in advertising costs. Firms whose advertising is more salient and therefore raise attention more easily charge lower …
Persistent link: https://www.econbiz.de/10011255707
. Information can come through two different channels: advertising and sequential consumer search. We arrive at the following … results. First, there is no monotone relationship between prices and the degree of advertising. Second, advertising and search … are “substitutes” for a large range of parameters. Third, when the cost of either search or advertising vanishes, the …
Persistent link: https://www.econbiz.de/10011256424
This paper develops a model of pricing and advertising in a matching environment with capacity constrained sellers and …. Equilibrium prices and profit maximizing advertising levels are derived and their properties analyzed. The model generates an … inverted U-shape relationship between individual advertisement and market tightness which is robust to alternative advertising …
Persistent link: https://www.econbiz.de/10008680300