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How does uncertainty affect the costs of raising finance in the bond market and via bank loans? Empirically, this paper finds that heightened uncertainty is accompanied by an increase in corporate bond yields and a decrease in bank lending rates. This finding can be explained with a model that...
Persistent link: https://www.econbiz.de/10012892132
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 …
Persistent link: https://www.econbiz.de/10010274911
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 …
Persistent link: https://www.econbiz.de/10010261367
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 …
Persistent link: https://www.econbiz.de/10012841929
if advertising markets are sufficiently thick. In turn, we study how disclosure affects the incentives of publishers to … competitiveness of advertising markets and the ability of platforms to profile consumers. We show that, even when most consumers multi …-home, the publishers may be worse off by outsourcing to the intermediary, in particular if they operate in thin advertising …
Persistent link: https://www.econbiz.de/10013218290
We conduct an experiment where subjects read online news articles and are shown ads for brands next to those articles. Using eye-tracking technology, we measure the attention that each individual devotes to each article and ad. Then, respondents choose between cash or vouchers for the brands...
Persistent link: https://www.econbiz.de/10013235099
We study consumer response towards sponsored search advertising and how to improve advertising performance on a large e … suggest that consumers dislike search advertising in our setting, but quality certificates mitigate this aversion and increase … advertising sales …
Persistent link: https://www.econbiz.de/10014078201
We model EU countries' bank ratings using financial variables and allowing for intercept and slope heterogeneity. Our aim is to assess whether 'old' and 'new' EU countries are rated differently and to determine whether 'new' ones are assigned lower ratings, ceteris paribus, than 'old' ones. We...
Persistent link: https://www.econbiz.de/10010270550
The harmonized European value-added tax (VAT) is anything but a modern consumption tax that taxes all goods and services at a uniform rate. As exemplified by an analysis of the Dutch version, some 60% of the base is exempted, that is, not taxed on output but on inputs. This has serious...
Persistent link: https://www.econbiz.de/10012834353
This paper discusses lessons that other regions could learn from European Union's effort to implement carbon pricing through EU Emission Trading System (EU ETS). Our lessons are, first of all, that a cap-and-trade system like EU ETS is very helpful in guaranteeing a credible and binding...
Persistent link: https://www.econbiz.de/10012836008