strategically set termination fees to induce fragmentation. This takes place when advertising revenues are potentially large but … identify an important link between termination fees, the online advertising market and Internet fragmentation. We extend the … model to account for multi-homing consumers, vertically integrated ISPs, third-party advertising platforms and heterogeneous …

. Information can come through two different channels: advertising and sequential consumer search. We arrive at the following … results. First, there is no monotone relationship between prices and the degree of advertising. Second, advertising and search … are “substitutes” for a large range of parameters. Third, when the cost of either search or advertising vanishes, the …