informative advertising. It is first explained how the informative role of advertising can be understood from the theory of search … technology through which advertising conveys information to consumers, considering in turn advertising costs, targeting, and …This chapter proposes an analysis of the role of advertising in the transmission of information in markets. It also …

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 …

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 …

Economists have emphasized the role of dissipative advertising and price as signals of quality. Most works, however …, limit the number of types to two options: high and low quality. Yet, production costs and quality both result from Ramp …;D efforts and therefore are both uncertain. I characterize the optimal separating marketing mix (price and advertising) when …

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 …

By combining a theory of herding behavior with the phenomenon of availability heuristic, this paper shows that non …

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 …

) industry. I present an empirical discrete-choice model of limited information on the part of consumers, where advertising … influences the set of products from which consumers choose to purchase. Multi-product firms choose prices and advertising in each … medium to maximize their profits. I apply the model to the US PC market, in which advertising expenditures are over $2 …

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 …

The last decades have seen large improvements in digital advertising technology that allowed firms to better target … specific consumer tastes. This research studies the relationship among digital advertising, the rise of varieties, and economic … welfare. We develop a model of advertising and varieties where firms choose the intensity of digital ads directed at specific …