advertising agency industry? This question is addressed by treating an advertising agency as a multiproduct firm. The firm … advertising messages which it creates on behalf of its clients. Evidence is presented indicating that the structure of demand and … costs in the advertising agency industry conforms to the conditions that MacDonald and Slivinski (1987) showed were required …

of consolidation on advertising prices and quantities). The remaining parts survey the literature on whether there are … too many radio stations; the strategies that stations use to boost the effectiveness of advertising; the effects of non …

This paper develops a model of pricing and advertising in a matching environment with capacity constrained sellers …. Sellers' expenditure on directly informative advertising attracts consumers only probabilistically. Consumers who happen to … maximizing advertising levels are derived and their properties analyzed, including the interplay of prices and advertising with …

We examine the impact of targeted advertising on competition and welfare when advertising directly affects the consumer …’s utility, as in Becker and Murphy (1993). We show that as targeted advertising becomes less costly, market concentration and … prices increase. Yet consumer welfare also increases because the increased advertising provides additional value to consumers …

This paper develops a model of pricing and advertising in a matching environment with capacity constrained sellers and …. Equilibrium prices and profit maximizing advertising levels are derived and their properties analyzed. The model generates an … inverted U-shape relationship between individual advertisement and market tightness which is robust to alternative advertising …