advertisers and customers. The relation between advertising receipts and sales receipts, which are both complementary and … antagonist, is different if media operators impose a price or a quantity to advertisers. When consumers dislike advertising …, media operators are better off setting an advertising price than an advertising quantity. We establish a relationship …

This paper analyzes persuasive advertising and pricing in oligopoly if firms sell differentiated products and consumers … that the demand-enhancing effect of persuasive advertising varies across consumers and increases in the average degree of … conformity. In equilibrium, both quality and cost leaders choose higher advertising intensities and charge higher prices than …

advertising to acquire new customers and thereby shift demand and increase sales. In the second, they use temporarily low markups … to do so. The marketing and advertising model fits the quantity and markup moments well, and implies that successful …