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 …

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 …

–averse consumers’ willingness to pay by product information in the form of informative advertising rather than by prices. We find that … attributes - is disclosed, and that partial information disclosure is the optimal mode of advertising for a monopolistic firm …