Regulation, Market Power, and Advertising Effectiveness

Advertising and Market Share Dynamics

This paper examines the role of advertising in the evolution of market structure in the US mutual fund industry. First, I present empirical evidence that mass advertising in this industry creates endogenous sunk costs, resulting in patterns consistent with Sutton’s (1991) predictions. In particular, I contrast evolutionary patterns of advertising spending and market structure between two segmen...

Advertising and Media Market Concentration*

In media markets, the value of advertisement exposure depends on circulation, and media consumers’ valuation is affected by advertising. This paper analyzes media market competition in a duopoly framework. There exist symmetric and asymmetric equilibria in terms of firm size, and sometimes a natural monopoly may emerge . There is less scope for asymmetry when products are more differentiated or...

Advertising in Duopoly Market

The paper presents the dynamics of consumer preferences over two competing products acting in duopoly market. The model presented compared the majority and minority rules as well as the modified Snazjd model in the Von Neumann neighborhood. We showed how important advertising in marketing a product is. We show that advertising should also consider the social structure simultaneously with the co...

Internet Advertising Formats and Effectiveness

Modeling Tourism Advertising Effectiveness

This study builds on previous research on the impact of tourism advertising and argues that there are a number of likely routes through which tourism advertising influences destination choice. Data were obtained from a survey that examined the impact of Illinois travel advertising and was conducted during the fall of 2001. The results confirm that there are strong linkages among top-of-mind awa...