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 …

The paper formalizes the intuition that brands are consumed for image reasons and that advertising creates a brand …'s image. The key idea is that advertising informs the public of brand names and creates the possibility of conspicuous … consumption by rendering brands a signalling device. In a price competition framework, we show that advertising increases …

promotion, in a model where a seller employs informative advertising to launch a new product. We propose a fairly general … advertising technology for the study of three promotional strategies—mass, imperfectly targeted, and customer directed advertising … (CDA). We find that both the private and the social incentives to use distinct advertising strategies are aligned, and that …

This paper argues, in the context of targeted advertising, that receivers' rational inattention and ability to … has an opportunity to launch an advertising campaign and chooses a targeting strategy -- which consumers to send its …

This chapter proposes an analysis of the role of advertising in the transmission of information in markets. It also … describes how the economic analysis of informative advertising provides a satisfactory account of advertising practices and … discusses the extent to which resorting to alternative approaches to advertising might be fruitful. In doing so, it provides an …

The last decades have seen large improvements in digital advertising technology that allowed firms to better target … specific consumer tastes. This research studies the relationship among digital advertising, the rise of varieties, and economic … welfare. We develop a model of advertising and varieties where firms choose the intensity of digital ads directed at specific …

There is widespread evidence that some firms use false advertising to overstate the value of their products. Using a … advertising actively influences rational buyers. We analyze the effects of policy under different welfare objectives and establish … a set of demand and parameter conditions where policy optimally permits a positive level of false advertising. Further …

There is widespread evidence that some firms use false advertising to overstate the value of their products. We … advertising actively influences rational buyers, and analyze the effects of policy under different welfare objectives. We … establish precise conditions where policy optimally permits a positive level of false advertising, and show how these conditions …

Economists have emphasized the role of dissipative advertising and price as signals of quality. Most works, however …;D efforts and therefore are both uncertain. I characterize the optimal separating marketing mix (price and advertising) when …), advertising appears to be necessary together with price to signal quality. Equilibrium profits depend on cost but not on quality …

We study commercialization of personal data through personalized advertising by a content platform. Content consumption …