In today's age of technological advancement and rapid change, much of the communication takes place on social networks, which offer a great opportunity for customer interaction. Social media is a popular and widely used marketing tool for communication between buyers and sellers. Advertising on...

We model the idea that when consumers search for products, they first visit the firm whose advertising is more salient. The gains a firm derives from being visited early increase in search costs, so equilibrium advertising increases as search costs rise. This may result in lower firm profits...