This chapter focuses on the economic mechanisms at work in recent models of advertising finance in media markets …, and to clarify the conceptual aspects. The chapter first develops a canonical model of two-sided markets for advertising … advertising markets, and concrete issues such as congestion and second-degree discrimination. The second part is devoted to recent …

recent evidence on increased ad-blocking, which has become a key concern to the entire advertising industry. Our main …

inferences about a consumer's preferred product category and offer advertising firms the possibility to target their ads to match … the consumer's taste. Such targeting reduces overall advertising costs and, as a direct effect, increases industry profits … intensify competition between firms. As a result, firms may earn higher profits from "de-targeted" advertising; i.e., when the …

' consideration sets. We find that moderately costly advertising allows firms to raise prices and possibly profits by reducing the … priced firm. However, when the cost of advertising is sufficiently low, advertising leads to a prisoners' dilemma that …

This paper explores the strategic tradeoff between advertising and pricing when firms have asymmetric loyal market … segments and also can compete for shoppers who purchase at the lowest advertised price. Two advertising structures consistent … with real world settings are considered. In the first setting firms are limited to advertising campaigns that reach a …

otherwise standard targeting framework can explain several recent key issues from the advertising industry, such as consumer …

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 …