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 …

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 …

We analyze platform competition where user data is collected to improve adtargeting. Considering that users incur … overall competition is weak or if targeting benefits are low, too much private data is collected, and vice-versa. Further, we … find that softer competition on either market side leads to more data collection, which implies substitutability between …

recent evidence on increased ad-blocking, which has become a key concern to the entire advertising industry. Our main … findings are robust to several variations, including price and salience competition as well as varying quality of the available …

less targeted advertising strategy due to its enhanced incentive to exploit a stronger recommendation effect. Even if the … raise its price instead of exploiting its recommendation effect. Thus, it leads to more targeted advertising and lower …

We develop a model of advertising markets in an environment where consumers may switch (or “multi-home”) across … limited set of publishers, reducing the effective demand for advertising and thus depressing prices. As the share of switching …

I present a model to describe the effects of persuasive advertising targeted at consumers with expectation …-based reference-dependent preferences. Persuasive advertising is competitive and increases the salience of advertised products while … deflated. I show that under moderate levels of loss aversion and product differentiation persuasive advertising has strictly …

now customize their advertising messages and products to the particular characteristics and needs of customers. Customers … order to reduce price competition, ii) if brand name effects are strong, both firms make extensive investments in product …