This paper studies the effect of a change in the marginal costs of advertising on advertising expenditures of firms and … on consumer prices. I make use of a policy change in Austria, that involved an increase of the taxation of advertising in … parts of the country, and a simultaneous decrease in other parts. I show that advertising expenditures of firms move quickly …

The advent of online advertising has simultaneously created unprecedented opportunities for advertisers to target …

through advertising in order to create new (false) needs in consumers, and, as a consequence, consumer spending rises, and so …

Today's marketing environment is characterized by a surge in multichannel shopping and ever more choice in advertising … channels. This requires firms to understand how both digital and traditional advertising drive sales within the same channel (e ….g., digital advertising affecting online sales) and across channels (e.g., digital advertising affecting offline sales). We …

Advertising often aims at creating and reinforcing brand differentiation, which should translate into reduced price … competition. Currently unknown are the boundary conditions for long-term advertising benefits, the route through which advertising … effects materialize, and the role of competitive advertising in the category. The authors develop a Hierarchical Dynamic …

This article studies the pricing and advertising of prescription drugs in a duopoly market. If advertising is banned …-cost pricing and normal profits. The introduction of advertising, and physician-oriented advertising (detailing) in particular …, creates market power and asymmetric pricing and advertising behavior. In an equilibrium, one firm chooses maximum detailing …

We present a Hotelling model of price and advertising competition between prescription drugs that differ in quality …. We show that advertising intensities are strategic substitutes, with the better quality drugs being the ones that are … loyalty is endogenously determined by promotional effort. The model's main results on advertising and pricing strategies are …