Pricing strategies may include the advertising of meeting-the-competition clauses (MCCs). We show in a specific spatial …

. Information can come through two different channels: advertising and sequential consumer search. We arrive at the following … results. First, there is no monotone relationship between prices and the degree of advertising. Second, advertising and search … are “substitutes” for a large range of parameters. Third, when the cost of either search or advertising vanishes, the …

We model the idea that when consumers search for products, they first visit the firm whose advertising is more salient …. The gains a firm derives from being visited early increase in search costs, so equilibrium advertising increases as search … heterogeneity in advertising costs. Firms whose advertising is more salient and therefore raise attention more easily charge lower …

advertising in that medium. We apply a simple model of a product market with network externalities where firms buy advertising …. The paper is the first combining a study of media markets with a behavioral foundation of how advertising affects the …