This paper assesses empirically the relationship between marketing expenditures and sales in the premium car segment in Germany. We employ a new data-set which contains model-specific data on sales (i.e. registrations), restyling activities and marketing expenditures at a monthly basis for the...

Newspapers' advertising revenues have declined sharply in recent decades. We build a model to investigate the consequences on newspapers' content and prices of a reduction in advertisers' willingness to pay. Newspapers choose the size of their newsroom, and readers are heterogeneous in the...

This paper presents a linear-city model where firms compete on price and levels of advertising, which affects the perceived utility of products. More cost efficient firms extend their advantage with more advertising, which leads to higher profits, if advertising is sufficiently effective. We...

This paper presents a linear-city model where firms compete on price and levels of advertising, which affects the perceived utility of products. More cost efficient firms extend their advantage with more advertising, which leads to higher profits, if advertising is sufficiently effective. We...

Does hospital advertising influence patient choice and health outcomes? We examine more than 220,000 individual patient-level visits over 24 months in Massachusetts to answer this question. We find that patients are positively influenced by hospital advertising; seeing a television advertisement...

Five studies show that people, including experts such as professional chefs, estimate quantity decreases more accurately than quantity increases. We argue that this asymmetry occurs because physical quantities cannot be negative. Consequently, there is a natural lower bound (zero) when...

Motivated by recent empirical findings on the relationship between new clinical evidence and the effectiveness of detailing, this paper develops a new structural model of detailing and prescribing decisions under the environment where both manufacturers and physicians are uncertain about drug...

We examine, with the tools of economics, a fundamental tenet of some of the most recent theoretical work in sociology, which we refer to as the Postmodernist Critique : preferences are socially constructed, firms exploit their monopoly power through advertising in order to create new (false)...

It only took an apple to fall on the head of Newton and what happened is history. Even though the book has nothing to do with physics we feel research effects business across the world as gravity affects life matter. Gravity is a key force behind the existence of life on earth, same way...

The welfare implications of direct-to-consumer advertising (DTCA) have garnered considerable attention and are complicated since the consumer delegates some decision-making authority to the physician, who is exposed to advertising as well. In this paper, I develop and estimate a structural model...