This paper develops a model of pricing and advertising in a matching environment with capacity constrained sellers …. Sellers' expenditure on directly informative advertising attracts consumers only probabilistically. Consumers who happen to … maximizing advertising levels are derived and their properties analyzed, including the interplay of prices and advertising with …

Comparative advertising by one brand against another showcases its merits versus the demerits of the other. In a two … advertising configuration, firms compete as Cournot oligopolists. In the symmetric case, equilibrium advertising constitutes a … clear welfare loss. Equilibrium advertising levels and advertising expenditures decline with rising advertising costs …

change total advertising spending as a share of total economic output, nor did it change significantly total advertising …

Comparative advertising by one brand against another showcases its merits versus the demerits of the other. In a two … advertising configuration, firms compete as Cournot oligopolists. In the symmetric case, equilibrium advertising constitutes a … clear welfare loss. Equilibrium advertising levels and advertising expenditures decline with rising advertising costs …

This paper argues that advertising should be regarded as a transaction between a consumer and a firm that potentially … establish direct markets for advertising. The media is viewed as an intermediary that can channel advertising and allocate it … markets, over- or underprovision of advertising, and in an overprovision of media quality for high income consumers (relative …