Showing 1 - 10 of 128
Persistent link: https://www.econbiz.de/10001639840
We develop a general equilibrium model of informative advertising to examine the implications of privacy regulations on consumer welfare, focusing on its utilitarian aspects. In our model, firms reach consumers by placing ads on an advertising platform. Privacy regulations affect ad...
Persistent link: https://www.econbiz.de/10014237509
In online social networks, social information, i.e., content generated and shared by users (e.g., past purchases), can be a substitute for sponsored advertising, which constitutes the network's main source of revenue. When will social information be let to spread freely over the platform? We...
Persistent link: https://www.econbiz.de/10014343684
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...
Persistent link: https://www.econbiz.de/10014368574
Product brands are facing the increasing challenge of differentiating themselves from the competition through authentic and inspiring advertisements. Therefore, the choice of the right typeface as a design element for advertisement texts may play a crucialrole in consumer behavior. Although...
Persistent link: https://www.econbiz.de/10015197500
This paper examines the optimal content regulation of DTCA by comparing two forms of DTCA-product-specific and category-specific-and identifies a key tradeoff which underlies this policy debate. Our analysis suggests that the optimal form of DTCA depends crucially on the cost effectiveness of...
Persistent link: https://www.econbiz.de/10013329470
This paper is concerned with the tension between consumer persuasion and freedom of choice. We study how assertive language (as in the slogan Just do it!) affects consumer compliance in hedonic vs. utilitarian contexts. Previous literature consistently claimed that forceful language would cause...
Persistent link: https://www.econbiz.de/10003923892
We investigate how consumer word of mouth (WOM) develops over time and in turn influences new product adoption. We develop a dynamic aggregate-level model of WOM development and new product diffusion that explicitly captures consumers’ learning of product quality from both marketing...
Persistent link: https://www.econbiz.de/10003930537
Pricing strategies may include the advertising of meeting-the-competition clauses (MCCs). We show in a specific spatial model scenario with differently informed consumers that MCCs primarily serve as a device to facilitate collusion instead of allowing for price discrimination between these...
Persistent link: https://www.econbiz.de/10003957044
This paper analyzes persuasive advertising and pricing in oligopoly if firms sell differentiated products and consumers have heterogeneous social attitudes towards the consumption by others. Deriving product demand from primitives, we show that the demand-enhancing effect of persuasive...
Persistent link: https://www.econbiz.de/10009130236