The Changing Architecture of Advertising Agencies
Marketing Science
Research Note---Estimating Heterogeneous Price Thresholds
Marketing Science
Targeted Advertising Strategies on Television
Management Science
Research NoteThe Benefits of Personalized Pricing in a Channel
Marketing Science
The Changing Architecture of Advertising Agencies
Marketing Science
Research Note---Estimating Heterogeneous Price Thresholds
Marketing Science
Accelerated Learning of User Profiles
Management Science
Search Engine Advertising: Channel Substitution When Pricing Ads to Context
Management Science
Marketing Science
Competitive Effects of Purchase-Based Targeted Advertising
Journal of Electronic Commerce in Organizations
Mobile advertising: evaluating the effects of animation, user and content relevance
Proceedings of the SIGCHI Conference on Human Factors in Computing Systems
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We show that when a single media content distributor (such as a television cable company or an Internet provider) delivers advertising messages on behalf of multiple competing brands, it can sometimes utilize customized advertising to implement monopoly pricing. Even though such monopolistic pricing can be implemented with varying degrees of customization of commercials, product revenues and consumer surplus are highest when the distributor chooses the highest level of customization feasible. Consumers would, obviously, prefer aggressive price competition in product markets. However, given that collusion on prices is facilitated anyway, when the distributor acts as a common agent, the welfare of consumers is enhanced when commercials are better aligned with their preferences.