characteristics and more concerned about hidden quality characteristics. Online retailers rely more on advertising than traditional …. Advertising and revenue data for the online book market reveal that consumers respond to advertising rather than low prices. As … the market increases, advertising costs escalate and there is no new entry. Advertising to sales ratios and market …

This paper studies advertising in vertically differentiated product markets with positive consumption externalities. In … consumers. In such markets, we show that firms will engage in advertising competition in order to convince consumers of their … levels of advertising. …

reexamines the debate as to whether firms use price or advertising to signal quality and whether advertising has pro- or anti …-competitive effects. We show that the signaling theory strongly predicts that advertising signals quality if price rivalry prevails, in …; combined price-advertising signals must be used when this difference shrinks. From a welfare point of view, advertising leads …

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 …