Download or read book Advertising as a signal of product quality written by Doron Fertig and published by . This book was released on 1989 with total page 143 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Advertising as a Signal of Product Quality written by Ignatius J. Horstmann and published by London, Ont. : Department of Economics, University of Western Ontario. This book was released on 1995 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Performance Based Pricing written by Juan Feng and published by . This book was released on 2009 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Performance-based advertising is becoming increasingly popular in the online advertising industry, where advertisers pay the publisher only when an “action” (e.g., a click-through or a purchase) is generated by the advertisement. This paper illustrates that adopting this emerging advertising scheme has profound impacts on one of the fundamental functions of advertising - signaling product quality. We identify several important dimensions that affect the signaling function of performance-based advertising relative to its traditional counterpart (impression-based advertising). These include: (1) Information - total advertising expenditure is determined after the demand is realized, so it is unobservable to consumers when making purchase decisions; (2) Ad performance - the measured “performance” (e.g., recorded click-throughs) includes actions generated by first-time buyers (i.e., advertising performance) and actions generated by repeat buyers (i.e., product performance), which increases the cost of signaling through advertising; (3) Demand uncertainty - the merchant pays only when a response to the advertisement is generated, which reduces the merchant's advertising uncertainty. We build a model of performance-based advertising by explicitly incorporating these factors and derive the conditions under which switching to performance-based advertising will (a) disable or strengthen the signaling function of advertising, (b) help or hurt the merchant, and (c) lead to a shared interest (win-win or lose-lose) or a conflicting interest (win-lose) for the the publisher and the merchant.
Download or read book With a Little Help from My Enemy written by and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Performance Based Advertising written by Juan Feng and published by . This book was released on 2009 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Performance-based advertising is becoming increasingly popular in the online advertising industry, where the advertiser pays to the publisher only when an "action" (e.g., a click-through) is generated by the advertisement. We study how the performance-based advertising scheme affects one of the fundamental functions of advertising - signaling product quality. We identify two critical factors that affect the signaling function of advertising under performance-based pricing: (1) the demand uncertainty factor, which measures advertisers' uncertainty about their potential market, and (2) the advertising performance over-measure factor, which describes the extent to which product performance accounts for advertising performance. We find that the uncertainty factor facilitates, but the over-measure factor impedes (or even destroys) the signaling function of performance-based advertising. Specifically, our results show that in the presence of the over-measure factor, switching from impression-based to performance-based advertising: (a) reduces the number of situations in which advertising can be used to signal quality, (b) increases the prices charged to consumers, (c) increases the expected advertising expenditure if the cost differentiation between the high- and low-quality firms is sufficiently high, but decreases the expected advertising expenditure otherwise, and (d) increases the advertiser's profit if the over-measure factor is low but the uncertainty factor is high, and decreases the profit otherwise.
Download or read book Advertising Signals of Product Quality written by Steven A. Matthews and published by . This book was released on 1990 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Price and Advertising Signals of Product Quality written by Paul Robert Milgrom and published by . This book was released on 1984 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Role of Price as a Signal of Product Quality in Monopolistic Markets written by Scott Davis and published by . This book was released on 1989 with total page 302 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Advertising as a Signal of Quality A New Explanation written by and published by . This book was released on 1995 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The present article provides a unified explanation for several phenomena related to advertising by firms. (i) Advertising without repeat purchase of the product, (ii) advertising from established brands, or post-introductory, (iii) simultaneous advertising from low and high quality firms, (iv) its persistence and pro-cyclicality. The explanation is original because it rests upon oligopolistic interaction. The analysis hinges upon two fundamental results. The rst is that advertising allows separation when a signal via prices only does not. The second is that purely dissipative advertising can be used to strategically deter entry. Hence, a link is established between entry deterrence and signaling.
Download or read book The Advertising of Credence Goods as a Signal of Product Quality written by Sunku Hahn and published by . This book was released on 2004 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The advertising of credence goods is analyzed in a similar way to the way Milgrom and Roberts analyzed the advertising of experience goods. The existing literature on credence goods has not considered the possibility that some consumers have the expertise to assess the product's quality and the possibility that the producer can advertize. I assume these two points and show that there exists a unique equilibrium that survives the 'intuitive criterion'. Also, it is shown that through encouraging producers to accept new technologies advertising may increase social welfare instead of just being a pure social cost.
Download or read book Industrial Organization written by Paul Belleflamme and published by Cambridge University Press. This book was released on 2010-01-07 with total page 725 pages. Available in PDF, EPUB and Kindle. Book excerpt: Industrial Organization: Markets and Strategies provides an up-to-date account of modern industrial organization that blends theory with real-world applications. Written in a clear and accessible style, it acquaints the reader with the most important models for understanding strategies chosen by firms with market power and shows how such firms adapt to different market environments. It covers a wide range of topics including recent developments on product bundling, branding strategies, restrictions in vertical supply relationships, intellectual property protection, and two-sided markets, to name just a few. Models are presented in detail and the main results are summarized as lessons. Formal theory is complemented throughout by real-world cases that show students how it applies to actual organizational settings. The book is accompanied by a website containing a number of additional resources for lecturers and students, including exercises, answers to review questions, case material and slides.
Download or read book The Relationship Between Optimal Advertising Level and Product Quality written by Zonghui Wang and published by . This book was released on 2015 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: "In this report the relationship between advertising level and quality is studied where advertising level is a random variable drawn from Normal distribution or Beta distribution. Consumers' prior beliefs are updated according to Bayesian rule after observing the level of advertising as a signal. In the previous literature the consumers ' beliefs were considered to be only binary, in contrast we examine the perfect Bayesian Nash equilibrium of a signaling game where consumers' beliefs are continuous. When the marginal cost of a high-quality firm is equal to that of a low-quality firm we derive a pooling equilibrium under both Normal and Beta distributions wherein the low-quality firm has an incentive to mimic the advertising level of the high-quality firm."--Page ii.
Download or read book Advertising and the Marketplace written by Pepall, Lynne and published by Edward Elgar Publishing. This book was released on 2021-07-31 with total page 294 pages. Available in PDF, EPUB and Kindle. Book excerpt: This accessible and comprehensive textbook explores the role of advertising in the marketplace. It investigates how firms’ advertising strategies are informative, persuasive or add value to the product advertised. The book explains in detail empirical methodologies used to identify the impact of advertising on consumer demand and on market structure and reviews some recent empirical findings. It concludes with an in-depth exploration of digital advertising and auctions along with a framework for current antitrust investigations into two-sided platforms (Google, Facebook) that are funded by advertising revenues.
Download or read book Handbook of Industrial Organization written by Mark Armstrong and published by Elsevier. This book was released on 2007-10-05 with total page 943 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is Volume 3 of the Handbook of Industrial Organization series (HIO). Volumes 1 & 2 published simultaneously in 1989 and many of the chapters were widely cited and appeared on graduate reading lists. Since the first volumes published, the field of industrial organization has continued to evolve and this volume fills the gaps. While the first two volumes of HIO contain much more discussion of the theoretical literature than of the empirical literature, it was representative of the field at that time. Since then, the empirical literature has flourished, while the theoretical literature has continued to grow, and this new volume reflects that change of emphasis.Thie volume is an excellent reference and teaching supplement for industrial organization or industrial economics, the microeconomics field that focuses on business behavior and its implications for both market structures and processes, and for related public policies.*Part of the renowned Handbooks in Economics series*Chapters are contributed by some of the leading experts in their fields*A source, reference and teaching supplement for industrial organizations or industrial economists
Download or read book Advertising as a Signal of Automotive Quality written by John W. Maxwell and published by . This book was released on 1996 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Industrial Organization written by Don E. Waldman and published by Routledge. This book was released on 2019-03-04 with total page 724 pages. Available in PDF, EPUB and Kindle. Book excerpt: Industrial Organization: Theory and Practice blends a rigorous theoretical introduction to industrial organization with empirical data, real-world applications and case studies. The book also supports students with a range of problems and exercises, and definitions of key terms and concepts. This balanced approach, which enables students to apply theoretical tools, has earned this book its ranking as one of the leading undergraduate texts in its field. For the fifth edition, relevant data, tables, empirical examples and case studies have been updated to reflect current trends and topics, in the most complete reorganization since the second edition. Further changes include: all public policy topics have been placed in the last section, making it simpler to use for courses that emphasize theory or public policy; an entirely new chapter on international trade and industrial organization; a new chapter on mergers; a separate section on antitrust; a companion website with PowerPoint slides and other supplements. This comprehensive book bridges the gap between economic theory and real-world case studies in an accessible, logical manner, making it the ideal undergraduate text for courses on industrial organization.
Download or read book Price Competition and Advertising Signals written by Federal Trade Federal Trade Commission and published by CreateSpace. This book was released on 2015-06-01 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: Can price and advertising be used by vertically differentiated duopolists to signal qualities to consumers? We show that pure price separation is impossible if the vertical differentiation is small, while adding dissipative advertising ensures existence of separating equilibria. Two simple, but non-standard, equilibrium refinements are introduced to deal with the multi-sender nature of the game, and they are shown to produce a unique separating and a unique pooling profile. Pooling results in a zero-profit Bertrand outcome. Separation gives strictly positive duopoly profits, and dissipative advertising is used by the high-quality firm when products are sufficiently close substitutes. Finally, depending on the differentiation, the separating prices of both firms may be distorted upwards or downwards compared to the complete information benchmark.
