This paper applies the theory of memory for advertising, developed in the consumer behavior literature, to an … industrial organization setting to provide insight into advertising strategies in imperfectly competitive markets. There are two … new ads is hampered by past ad exposure. The equilibrium of the advertising game is characterized for both proactive and …

This paper shows how a firm can use non-targeted advertising to exploit consumers' desire for social status. A … monopolist sells multiple varieties of a good to consumers who each care about what others believe about his wealth. Advertising …

product. We build a micro-model where multiple firms compete through targeted advertising. Consumers make inferences from … targeted advertising about their potential match values for the product category, as well as the advertising firm's unobserved … quality. We show that in equilibrium, upon being targeted by a firm, consumers make optimistic inferences about the product …

We study the relation between ad networks, consumer privacy and the online advertising market. We consider two …). We show that tracking may increase or decrease the provision of ads, depending on its effect on expected advertising …

The paper formalizes the intuition that brands are consumed for image reasons and that advertising creates a brand …'s image. The key idea is that advertising informs the public of brand names and creates the possibility of conspicuous … consumption by rendering brands a signalling device. In a price competition framework, we show that advertising increases …

There is widespread evidence that some firms use false advertising to overstate the value of their products. Using a … advertising actively influences rational buyers. We analyze the effects of policy under different welfare objectives and establish … a set of demand and parameter conditions where policy optimally permits a positive level of false advertising. Further …

Economists have emphasized the role of dissipative advertising and price as signals of quality. Most works, however …), advertising appears to be necessary together with price to signal quality. Equilibrium profits depend on cost but not on quality …, limit the number of types to two options: high and low quality. Yet, production costs and quality both result from Ramp …

This paper argues, in the context of targeted advertising, that receivers' rational inattention and ability to … has an opportunity to launch an advertising campaign and chooses a targeting strategy -- which consumers to send its …

We estimate the distribution of television advertising elasticities and the distribution of the advertising return on … investment (ROI) for a large number of products in many categories. Our results reveal substantially smaller advertising … over-investment in advertising by most firms. While the overall ROI of the observed advertising schedule is only positive …

There is widespread evidence that some firms use false advertising to overstate the value of their products. We … advertising actively influences rational buyers, and analyze the effects of policy under different welfare objectives. We … establish precise conditions where policy optimally permits a positive level of false advertising, and show how these conditions …