This paper studies how the emergence of specialized communication media focused on both high quality contents and high quality advertised products, affects the functioning of a vertically differentiated market. To that end, we formulate a simultaneous game of pricing and targeted advertising...

This paper develops a model of informative advertising in which a firm builds a database using its historical sales records in order to directly target ads on those consumers who have a high probability of purchasing its products. We show that the firm can use this type of direct advertising as...

This paper studies how the strategic interaction between a specialized communication platform and two firms, competing in prices and advertising efforts, determines the equilibrium advertising fee and the pattern of competition between sellers. We show that the link between information and price...