Comparative Advante and Efficient Advertising in the Attention Economy
AbstractWe 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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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 928.
Date of creation: 03 Nov 2006
Date of revision:
attention economy; comparative advantage; advertising;
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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-12-04 (All new papers)
- NEP-MIC-2006-12-04 (Microeconomics)
- NEP-MKT-2006-12-04 (Marketing)
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