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Consumer flexibility, data quality and targeted pricing
Sapi, Geza; Suleymanova, Irina - 2013
We investigate how firms' incentives to acquire customer data for targeted offers depend on its quality. A two-dimensional Hotelling model is proposed where consumers are heterogeneous both with respect to their locations and transportation cost parameters (flexibility). Firms have perfect data...
Persistent link: https://www.econbiz.de/10010204781
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A generalized model of sales
Shelegia, Sandro; Wilson, Christopher - 2016
To provide a more exible workhorse model of temporary price reductions or "sales", this paper presents a substantially generalized "clearinghouse" sales framework. Our framework permits multiple dimensions of firm heterogeneity, and views firms as competing directly in utility rather than...
Persistent link: https://www.econbiz.de/10011557241
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A Model of Strategic Targeted Advertising
Moraga-González, José L.; Galeotti, Andrea - 2021
We study a simultaneous move game of targeted advertising and pricing in a market with various consumer segments. In … advertising, they can obtain positive profits. In equilibrium, firms price very aggressively when they address the most profitable …
Persistent link: https://www.econbiz.de/10013319248
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Strategic Targeted Advertising
Galeotti, Andrea; Moraga-González, José L. - 2003
We present a strategic game of pricing and targeted-advertising. Firms can simultaneously target price advertisements … segmentation cannot occur surely. Equilibria exhibit random advertising - to induce an unequal distribution of information in the …
Persistent link: https://www.econbiz.de/10014030946
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Imperfect targeting and advertising strategies
Karle, Heiko; Reisinger, Markus - 2023
Persistent link: https://www.econbiz.de/10014422619
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Strategic Targeted Advertising
Galeotti, Andrea; Moraga, Jose Luis - 2003
We present a strategic game of pricing and targeted-advertising. Firms cansimultaneously target priceadvertisements to … occur surely. Equilibria exhibit random advertising--to induce an unequal distribution of information in the market …
Persistent link: https://www.econbiz.de/10010325630
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Mergers in imperfectly segmented markets
Baake, Pio; Wey, Christian - 2009
incentives are much larger than standard analysis suggests. -- Imperfect market segmentation ; oligopoly ; price discrimination …
Persistent link: https://www.econbiz.de/10003874770
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De-targeting: advertising an assortment of products to loss-averse consumers
Karle, Heiko; Peitz, Martin - 2016
inferences about a consumer's preferred product category and offer advertising firms the possibility to target their ads to match … the consumer's taste. Such targeting reduces overall advertising costs and, as a direct effect, increases industry profits … intensify competition between firms. As a result, firms may earn higher profits from "de-targeted" advertising; i.e., when the …
Persistent link: https://www.econbiz.de/10011492145
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Platform Design in Targeted Advertising
Fazeli, Nima - 2021
Firms compete for slots on an ad-financed platform by paying the platform to display their ads. In its design, the platform decides on its ``matching quality'' by choosing how much weight to give to each firm’s payment while taking into account consumers’ preferences. Increasing the quality...
Persistent link: https://www.econbiz.de/10013322748
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Targeted information and limited attention
Hefti, Andreas; Liu, Shuo - 2019 - Revised version
otherwise standard targeting framework can explain several recent key issues from the advertising industry, such as consumer …
Persistent link: https://www.econbiz.de/10012154264