This paper studies advertising in vertically differentiated product markets with positive consumption externalities. In … consumers. In such markets, we show that firms will engage in advertising competition in order to convince consumers of their … levels of advertising. …

This paper lays out an econometric strategy for estimating the effect of advertising on prices, by exploiting seasonal … demand and imperfect targeting. We present two simple models of duopoly where firms choose prices and advertising. In times …, and so the effectiveness of advertising is greater, and firms advertise more. We use this to justify IV estimation of …

This paper investigates the role of campaign advertising and the opportunity of legal restrictions on it. An electoral … receive on non-directly informative advertising. This paper shows that: (1) A separating equilibrium exists in which the group … rational, a ban on campaign advertising can be welfare-improving; and (3) Split contributions may arise in equilibrium (and …

capture some of the retailer’s profits. A producer always benefits from investing into an advertising campaign with suggested …

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

We present a Hotelling model of price and advertising competition between prescription drugs that differ in quality …/side e¤ects. Advertising results in the endogenous formation of two consumer groups: brand loyal and non-brand loyal ones. We … show that advertising strategies are strategic substitutes, with the better quality drugs being the ones that are most …

This paper examines incentives for exclusive distribution of content in the presence of advertising. A monopoly seller …-maximising choice, even when distributors also sell advertising airtime. When distributors are purely advertising-funded, however, non …-exclusive contracting may instead be preferred. Advertising revenues accruing directly to the content provider may also generate a …

We extend the persuasion game to bring it squarely into the economics of advertising. We model advertising as exciting … consumer interest into learning more about the product, and determine a firm's equilibrium choice of advertising content over … quality information, price information, and horizontal match information. Equilibrium is unique whenever advertising is …

Restricting advertising is one way governments seek to reduce consumption of potentially harmful goods. There have been … increasing calls to apply a similar policy to the junk food market. The effect will depend on how brand advertising influences … dynamic oligopoly supply in which multi-product firms compete in prices and advertising budgets. We model the impact of …