Showing 1 - 10 of 3,808
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/10009130236
We consider a dynamic oligopoly on the beer market and study the differential effects of switching costs on product prices, market shares, and profits. Our demand estimation results show large differences in brand loyalty, and switching costs across customer income segments and beer brands. Our...
Persistent link: https://www.econbiz.de/10012510220
This paper studies the effect of advertising on content differentiation on YouTube, the second-most visited website in … the world. I demonstrate that an exogenous increase in the feasible advertising quantity leads to a considerable decrease …; thus, viewers who perceive advertising as a nuisance – and therefore as an implicit price they have to pay – could easily …
Persistent link: https://www.econbiz.de/10012313777
becomes lessdistinctive; and or it introduces advertising.These are timely issues, given the extent to which public … broadcasters are increasingly criticised forseeking popularity, losing distinctiveness, and in many cases, introducing advertising … parallels to other sectors where services are also offered free at the point of access, butfinanced by advertising. The most …
Persistent link: https://www.econbiz.de/10011400384
Digital media goods and digital media platforms exhibit cost structures and network effects that imply that price and quantity effects of consumption taxes are qualitatively different compared to what we typically find for physical goods. For instance, in most European countries and US states,...
Persistent link: https://www.econbiz.de/10011566482
raise revenue. A media firm can either be financed by advertising revenue, by direct payment from the viewers (or the …, the larger is the fraction of their revenue coming from advertising. A media firm's scope for raising revenues from ads …
Persistent link: https://www.econbiz.de/10003861802
leads to higher average prices. We test the theory using detailed data for Brazilian exporters and find that the destination …
Persistent link: https://www.econbiz.de/10009764401
The effects of (private, small-scale) piracy on the pricing behavior of producers of information goods are studied within a unified model of vertical differentiation. Although information goods are assumed to be perfectly horizontally differentiated, demands are interdependent because the...
Persistent link: https://www.econbiz.de/10002521692
A monopolist producing vertically differentiated durable goods can offer in each period a sequence of price-quality menus to segment the market. We show that, contrary to the Coase conjecture for the homogeneous durable good monopoly, thanks to the ability to produce differentiated durable...
Persistent link: https://www.econbiz.de/10012628729
This paper analyzes the generalized quality differentiation model in multi-sided markets with positive externalities, which leads to new insights into the optimal pricing structure of the firm. We find that quality differentiation for users on one side affects not only the side involving...
Persistent link: https://www.econbiz.de/10012612674