economic theory prescribes that the advertising volume can be optimally reduced by levying a tax on ads. However, making use of …

examples. This advertising cost is added into the sales price of the product, resulting in consumers being harmed by the … embedded advertising costs in the products or services purchased. We argue here, using Bork's own criterion - except to expand … Bork critique is a hoax in two ways: Bork's analysis does not include the other side of the market. The cost of advertising …

' consideration sets. We find that moderately costly advertising allows firms to raise prices and possibly profits by reducing the … priced firm. However, when the cost of advertising is sufficiently low, advertising leads to a prisoners' dilemma that …

This paper explores the strategic tradeoff between advertising and pricing when firms have asymmetric loyal market … segments and also can compete for shoppers who purchase at the lowest advertised price. Two advertising structures consistent … with real world settings are considered. In the first setting firms are limited to advertising campaigns that reach a …

, prices are zero - "free." On the other side of the market, Facebook's and Google's revenues are derived from advertising … advertised, - Increasing prices to consumers beyond the cost of advertising via the market power of the remaining firms in the …

Tech giants such as Google and Facebook generate significant amounts of advertising income, which is mainly reported in … are the prime reason why platforms exist and generate advertising income. To account for these effects, conventional tax …

otherwise standard targeting framework can explain several recent key issues from the advertising industry, such as consumer …

This paper studies the impact of cooperative R&D and advertising on innovation and welfare in a duopolistic industry …. The model incorporates two symmetric firms producing differentiated products. Firms invest in R&D and advertising in the … presence of R&D spillovers and advertising spillovers. Advertising spillovers may be positive or negative. Four cooperative …

price collusion in duopoly markets. Two environments are tested, in which the size of the spillover between advertising … expenditures is varied. The results show that the competitiveness of advertising and prices are significantly higher when the … advertising spillover is higher than the price spillover than when advertising spillover is lower than the price spillover. In the …

We examine an oligopoly model of advertising competition where each firm's market share depends on its own and its … competitors' advertising decisions. A differential game model is developed and used to derive the closed-loop Nash equilibrium … discuss the effects of an increase in the number of competing firms on advertising expenditure, market share and profitability …