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We present a strategic game of pricing and targeted-advertising. Firms cansimultaneously target priceadvertisements to … occur surely. Equilibria exhibit random advertising--to induce an unequal distribution of information in the market …
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recent evidence on increased ad-blocking, which has become a key concern to the entire advertising industry. Our main …
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We analyze how alternative consumer data handling regimes affect the welfare of consumers, advertising firms, and an … intermediary Ad exchange in the context of targeted advertising. We find that the collection and use of consumer data for targeting … share with advertising firms only a subset of consumer data, maximizing its profits at their cost. In situations where the …
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Firms compete for slots on an ad-financed platform by paying the platform to display their ads. In its design, the platform decides on its ``matching quality'' by choosing how much weight to give to each firm’s payment while taking into account consumers’ preferences. Increasing the quality...
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