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On the Efficiency of Spam Mailing and Portal Advertising

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Abstract

The objective of this paper is to provide a simple approach endogenizing the welfare reducing or welfare enhancing effect of informative advertising. Using this approach, it is possible to analyse the welfare consequences of a technology shock that reduces unit information costs, and to explain whether electronic junk mails or portal advertising will cause welfare gains or losses in a competitive environment.

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File URL: http://www.wiwi.uni-augsburg.de/vwl/institut/paper/275.pdf
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Bibliographic Info

Paper provided by Universitaet Augsburg, Institute for Economics in its series Discussion Paper Series with number 275.

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Length: pages
Date of creation: Jun 2005
Date of revision:
Handle: RePEc:aug:augsbe:0275

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Keywords: advertising; externalities; internet portals;

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  1. Reisinger, Markus, 2004. "Two-Sided Markets with Negative Externalities," Discussion Papers in Economics 478, University of Munich, Department of Economics.
  2. Barros Pedro P & Kind Hans Jarle & Nilssen Tore & Sørgard Lars, 2005. "Media Competition on the Internet," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 4(1), pages 1-20, January.
  3. Simon P. Anderson & Stephen Coate, 2005. "Market Provision of Broadcasting: A Welfare Analysis," Review of Economic Studies, Oxford University Press, vol. 72(4), pages 947-972.
  4. Butters, Gerard R, 1977. "Equilibrium Distributions of Sales and Advertising Prices," Review of Economic Studies, Wiley Blackwell, vol. 44(3), pages 465-91, October.
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