We consider a market with two symmetric firms and two asymmetric consumer groups. Firms send advertising messages which inform consumers about the existence and the price of their product (Butters, 1977). Targeting a specific consumer is imperfect as with some probability the consumer is not...

The empirical analysis of firm growth is a classical field in industrial economics. Insights into the determinants of firm growth are particularly interesting for mature markets. A typical example of a mature market is the lodging industry in high-income countries, characterised by a high degree...

We analyze the effects of consumers' limited attention on welfare in a model of horizontal product differentiation. We present a novel approach of modeling limited attention: an attention radius. Each consumer only notices goods that are within her attention radius, i.e., goods that are...