This paper proves that oligopolistic price competition with both targeted advertising and targeted prices can lead to a permanent fragmentation of the market into a local monopoly. However, compared to mass advertising, targeting increases social welfare and turns out to be more beneficial for...

This paper proves that oligopolistic price competition with both targeted advertising and targeted prices can lead to a permanent fragmentation of the market into a local monopoly. However, compared to mass advertising, targeting increases social welfare and turns out to be more beneficial for...

This paper studies how the strategic interaction between a specialized communication platform and two firms, competing in prices and advertising efforts, determines the equilibrium advertising fee and the pattern of competition between sellers. We show that the link between information and price...