The advance of ad-blocking technology is expected to have profound implications to the advertising industry. This paper makes the first attempt to understand the impacts of ad blocking on consumer's ad avoidance and optimal reactions by advertiser and ad platform while the primary role of...

In mature markets with competing firms, a common role for advertising is to shift consumer preferences towards the advertiser in a tug-of-war, with no effect on category demand. In this paper, we analyze the effect of such "combative" advertising on market power. We show that, depending on the...