This paper studies the practice of influencer marketing in oligopoly markets and its effect on market efficiency. We develop a duopoly model in which firms sell horizontally differentiated products. Consumers are influenced by other consumers' choices, and some consumers are more influential...

We study how user-generated content (UGC) about new products impacts a firm's advertising and pricing decisions as well as the effect on profits and market dynamics. We construct a two-period model, where consumers value quality and are heterogeneous in their taste for the new product's...

Recent developments in social media have morphed the age-old practice of paying influential individuals for product endorsements into a multibillion-dollar industry, extending well beyond celebrity sponsorships. We develop a parsimonious model in which influencers trade off the increased revenue...