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Empirical studies on advertising outlays report that incumbent firms change their advertising strategies in response to … a new entry. While some incumbents reduce their advertising expenditures, others increase them in comparison to the pre …-entry period. Existing literature on strategic advertising in entry games is mostly focused on entry deterrence, meanwhile no …
Persistent link: https://www.econbiz.de/10012957431
' 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 …
Persistent link: https://www.econbiz.de/10012934072
Targeted advertising can benefit consumers through lower prices for access to websites, Yet, if consumers dislike that …
Persistent link: https://www.econbiz.de/10012967414
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 …
Persistent link: https://www.econbiz.de/10014216546
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 …
Persistent link: https://www.econbiz.de/10012164220
intensifies price competition. However, a profit-maximizing search engine imposes a distortion by charging too high an advertising …
Persistent link: https://www.econbiz.de/10014042047
undertakes promotional expenditures, uch as advertising, to increase sales and to compete against other retailer(s). The … manufacturer supports the retailer’s promotional expenditure through a cooperative advertising program by reimbursing a portion …
Persistent link: https://www.econbiz.de/10014045898
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 …
Persistent link: https://www.econbiz.de/10014046681
, magazines, newspapers, the Internet, and television (the illustrative example henceforth). Most advertising expenditures are … incurred for these media. They are also mainly supported by advertising revenue. Early work stressed possible market failures … sides are coordinated by broadcasters (or “platforms”) that choose ad levels and program types, and advertising finances the …
Persistent link: https://www.econbiz.de/10014023811
assumptions that there is no advertising congestion and that viewers single-home. Allowing for crowding in viewer attention spans …
Persistent link: https://www.econbiz.de/10013117358