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Comparative Advante and Efficient Advertising in the Attention Economy

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Author Info
Huberman, Bernardo
Wu, Fang
Abstract

We analyze the problem that enterprises face when having to decide on the most effective way to advertise several items belonging to their inventories within the company’s webpages. We show that the ability to arbitrarily partition a website among items leads to a comparative advantage among webpages which can be exploited so as to maximize the total utility of the enterprise. This result, which also applies to the case of several competitive providers, is then extended to dynamical scenarios where both the advertising allocation and the exposure levels vary with time.

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File URL: http://mpra.ub.uni-muenchen.de/928/
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 928.

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Date of creation: 03 Nov 2006
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Handle: RePEc:pra:mprapa:928

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Web page: http://mpra.ub.uni-muenchen.de
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Related research
Keywords: attention economy comparative advantage advertising

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Find related papers by JEL classification:
M3 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising
M37 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising - - - Advertising

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Josef Falkinger, 2003. "Attention Economies," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
    Other versions:
  2. Arjo Klamer & Hendrik P. van Dalen, 2002. "Attention and the art of scientific publishing," Journal of Economic Methodology, Taylor and Francis Journals, vol. 9(3), pages 289-315, November. [Downloadable!] (restricted)
    Other versions:
  3. Rosen, Sherwin, 1978. "Substitution and Division of Labour," Economica, London School of Economics and Political Science, vol. 45(179), pages 235-50, August. [Downloadable!] (restricted)
    Other versions:
  4. Sattinger, Michael, 1978. "Comparative Advantage in Individuals," The Review of Economics and Statistics, MIT Press, vol. 60(2), pages 259-67, May. [Downloadable!] (restricted)
  5. Josef Falkinger, 2005. "Limited Attention as the Scarce Resource in an Information-Rich Economy," IZA Discussion Papers 1538, Institute for the Study of Labor (IZA). [Downloadable!]
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