Informative advertising with spillover effects
نویسندگان
چکیده
منابع مشابه
Informative Advertising with Spillover Effects∗
This paper studies the effects of advertising in a Bertrand duopoly model with informative advertising, which is an extension of Grossman and Shapiro (1984). It introduces spillover advertising effects on top of the direct advertising effects. Also, the model involves R&D activities, which make the model dynamical. It is shown that the spillover effects would make the environment more monopolis...
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In order to get a grasp of the market for advertising, one needs to understand why firms demand advertising, and how suppliers of advertising set their prices. In the present analysis, firms buy advertising in order to inform consumers about their products. TV channels offer advertising on a per-viewer basis. We find that the performance of this market for advertising depends on features of bot...
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This paper introduces a model to analyze the role of the cost of information dissemination in large markets where firms have varying degrees of intrinsic efficiency reflected in their marginal costs. Firms enter a market and discover how efficient they are. Those firms with high enough efficiency stay, others exit. Remaining firms then compete to attract consumers by disseminating information a...
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Multiproduct Competition, Informative Advertising and Cognitive Limitations In several product categories, such as cereals, ice cream, and detergents, competing firms advertise a variety of products designed to meet the needs of their diverse consumers. Although consumers are exposed to thousands of such product advertisements in a day, they pay attention to only a very small fraction of these ...
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ژورنال
عنوان ژورنال: International Journal of Economic Theory
سال: 2011
ISSN: 1742-7355
DOI: 10.1111/j.1742-7363.2011.00170.x