equilibria prove equivalent in the absence of consumption externalities, but not in their presence. We provide several examples …

This paper studies advertising in vertically differentiated product markets with positive consumption externalities. In … markets with consumption externalities, the value of the product to the consumer depends on the purchasing decisions of other …

externalities, apart from its persuasive and informative roles. We show that advertising may function as a device to coordinate … consumer expectations of the purchasing decisions of other consumers in markets with consumption externalities. The …

due to consumption externalities. Finally, with perfectly flexible prices the ranking might increase the market power of …

heterogenous agents interact through local public goods or externalities (school funding, neighbourhood effects) and economy …

This Paper demonstrates that mall store contracts are written to internalize externalities through both an efficient … allocation and pricing of space and an efficient allocation of incentives across stores. Certain stores generate externalities by …

We study the effects of allocative and informational externalities in (multi-object) auctions and related mechanisms …. Such externalities naturally arise in models that embed auctions in larger economic contexts. In particular, they appear … driving force behind many new, specific phenomena with allocative externalities: even in complete information settings …