We study a market model in which competing firms use costly marketing devices to influence the set of alternatives … a function of the marketing devices employed by the firms. We examine the implications of this behavioral model in the … marketing devices and consumers’ conversion rates. …

We shed light on the function, properties and optimal size of austerity using the standard sovereign model augmented to … include incomplete information about credit risk. Austerity is defined as the shortfall of consumption from the level desired … by a country and supported by its repayment capacity. We find that austerity serves as a tool for securing a more …

sovereign default premia, government consumption, and output. We find that whether austerity pays off depends on a) initial … premia in benign times. These findings pertain to the short run. Austerity always pays off in the long run, but particularly …

After the Global Financial Crisis a controversial rush to fiscal austerity followed in many countries. Yet research on … the effects of austerity on macroeconomic aggregates was and still is unsettled, mired by the difficulty of identifying … novel approach, we show that austerity is always a drag on growth, and especially so in depressed economies: a one percent …

increases advertising clutter (leading to a potential downward spiral), may reduce total welfare and content quality, and can …

We compare the advertising intensity and content of programming in a market with competing media platforms. With pay …-tv media platforms have two sources of revenues, advertising revenues and revenues from viewers. With free-to-air media … platforms receive all revenues from advertising. We show that if viewers strongly dislike advertising, the advertising intensity …

, namely that industry concentration fell just at the same time as industry advertising expenditures rose sharply. Since both … stylized fact raises interesting questions about whether – and if so, how advertising affects entry. We use a model of consumer … switching behaviour to help interpret the facts. The model predicts a simple linear association between market and advertising …

We develop a model with many advertisers (products) and many advertising markets (media). Each advertiser sells to a … different segment of consumers, and each medium has a different ability to target advertising messages. We characterize the … competitive equilibrium in the media markets and evaluate the implications of targeting in advertising markets. An increase in the …