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 …

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 …

be a substitute for sponsored advertising, which constitutes the network's main source of revenue. When will social … advertising, which is determined by: (i) how many times customers search different products, and (ii) how persuadable they are to … sample and try the advertised goods. When the effective response to advertising is greater for ‘late movers’, social …