the dual purpose of disclosing content quality and generating advertising revenue. We show in a reduced-form model how the … publishers optimal ratio of advertising revenue to sales revenue is linked to characteristics of both the content market and the … advertising market. We assume that consumers learn about content quality from the free samples in a Bayesian fashion. Surprisingly …

This paper studies advertising in vertically differentiated product markets with positive consumption externalities. In … consumers. In such markets, we show that firms will engage in advertising competition in order to convince consumers of their … levels of advertising. …

We investigate the dynamic relationship between advertising and product quality under duopolistic competition. By using … a simplified vertical product differentiation model with voluntary advertising, we show that the firm with larger market … share has a larger advertising share and that there is a positive relationship between the difference in product quality and …

We derive the optimal ratio between advertising and sales income when a publisher maximises its profits with respect to … advertising space and product price. If consumers are more adverse towards advertising than towards price, the ratio is higher …

We derive the optimal ratio between advertising and sales income when a publisher maximises its profits with respect to … advertising space and product price. If consumers are more adverse towards advertising than towards price, the ratio is higher …

The paper empirically studies whether pharmaceutical firms uses advertising as a signal for high quality drugs. A …