Greenwood, Jeremy; Ma, Yueyuan; Yorukoglu, Mehmet - National Bureau of Economic Research - 2021
A model is developed where traditional and digital advertising finance the provision of free media goods and affect … price competition. The economy is not efficient. Media goods are under provided. Additionally, there is too much advertising … advertising increases consumer welfare significantly and is disproportionately financed by better-off consumers. The welfare gain …