Advertising for Attention in a Consumer Search Model
Bibliographic Data
| ID | 9703050 |
|---|---|
| Authors | Marco A Haan (University of Groningen), Marco Haan (0000-0003-2295-1854, University of Groningen), José L Moraga‐González (0000-0002-1669-8402, ICREA, IESE Business School and University of Groningen) |
| Year | 2011 |
| Volume | 121 |
| Issue | 552 |
| Pages | 552-579 |
| Publication date | 2011-05-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/j.1468-0297.2011.02423.x |
| OpenAlex | W2111132160 |
| Language | EN |
| Citations received | 12 |
| References cited | 37 |
We model the idea that when consumers search for products, they first visit the firm whose advertising is most salient. The gains a firm derives from being visited early increase in search costs, so equilibrium advertising increases as search costs rise. As a result, higher search costs may decrease both consumer welfare and firm profits. We extend the basic model by allowing for firm heterogeneity in advertising costs. Firms that raise attention more easily advertise more but also charge lower prices and obtain higher profits. As advertising cost asymmetries increase, consumer surplus falls and aggregate profits rise
Advertising · Business · Economics · Consumer Market Behavior and Pricing · Digital Platforms and Economics · Merger and Competition Analysis
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| Unique citing works | 12 |
|---|---|
| Citations per year | 0,8 |
| Citation span | 2011 - 2026 (16) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 11 |