IDEAS home Printed from https://ideas.repec.org/a/bla/sysdyn/v24y2008i3p377-405.html
   My bibliography  Save this article

A communication model with limited information‐processing capacity of recipients

Author

Listed:
  • Oleg V. Pavlov
  • Robert K. Plice
  • Nigel P. Melville

Abstract

We develop a system dynamics model of message‐based communication, where the information‐processing capacity of message recipients is limited. Profit‐seeking broadcasters send messages, but only some of these messages are valuable to recipients. Recipients cannot determine whether or not a message is valuable until it is processed. Information overload occurs when more messages arrive than recipients can process. Numerical experiments test alternative approaches for mitigating information overload. We show that message filtering can increase the flow of for‐profit communication. Market‐based mechanisms, while aimed at improving the social outcome, can actually lead to suboptimal results and to a complete collapse of for‐profit communication. Copyright © 2008 John Wiley & Sons, Ltd.

Suggested Citation

  • Oleg V. Pavlov & Robert K. Plice & Nigel P. Melville, 2008. "A communication model with limited information‐processing capacity of recipients," System Dynamics Review, System Dynamics Society, vol. 24(3), pages 377-405, September.
    • Handle: RePEc:bla:sysdyn:v:24:y:2008:i:3:p:377-405
    DOI: 10.1002/sdr.407
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/sdr.407
    Download Restriction: no
    File URL: https://libkey.io/10.1002/sdr.407?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Martin, Brett A. S. & Van Durme, Joël & Raulas, Mika & Merisavo, Marko, 2003. "Email Advertising: Exploratory Insights from Finland," Journal of Advertising Research, Cambridge University Press, vol. 43(3), pages 293-300, September.
    2. Loder Theodore & Van Alstyne Marshall & Wash Rick, 2006. "An Economic Response to Unsolicited Communication," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 6(1), pages 1-38, March.
    3. Timothy Van Zandt, 2004. "Information Overload in a Network of Targeted Communication," RAND Journal of Economics, The RAND Corporation, vol. 35(3), pages 542-560, Autumn.
    4. Oleg V. Pavlov & Nigel Melville, 2005. "Mitigating the Tragedy of the Digital Commons: the Case of Unsolicited Commercial Email," Computing in Economics and Finance 2005 231, Society for Computational Economics.
    5. Rust, Roland T. & Espinoza, Francine, 2006. "How technology advances influence business research and marketing strategy," Journal of Business Research, Elsevier, vol. 59(10-11), pages 1072-1078, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Oleg V. Pavlov & Evangelos Katsamakas, 2024. "Tuition too high? Blame competition," Papers 2405.17762, arXiv.org.
    2. Pavlov, Oleg V. & Katsamakas, Evangelos, 2023. "Tuition too high? Blame competition," Journal of Economic Behavior & Organization, Elsevier, vol. 213(C), pages 409-431.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pavlov, Oleg V. & Melville, Nigel & Plice, Robert K., 2008. "Toward a sustainable email marketing infrastructure," Journal of Business Research, Elsevier, vol. 61(11), pages 1191-1199, November.
    2. Chiao, Benjamin & MacKie-Mason, Jeffrey, 2012. "Using uncensored communication channels to divert spam traffic," Information Economics and Policy, Elsevier, vol. 24(3), pages 173-186.
    3. B. Curtis Eaton & Ian A. MacDonald & Laura Meriluoto, 2013. "Filtering and email pricing as solutions to spam," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 46(3), pages 881-899, August.
    4. Simon P. Anderson & André De Palma, 2009. "Information congestion," RAND Journal of Economics, RAND Corporation, vol. 40(4), pages 688-709, December.
    5. Il-Horn Hann & Kai-Lung Hui & Sang-Yong T. Lee & Ivan P. L. Png, 2008. "Consumer Privacy and Marketing Avoidance: A Static Model," Management Science, INFORMS, vol. 54(6), pages 1094-1103, June.
    6. Khim-Yong Goh & Kai-Lung Hui & Ivan P. L. Png, 2015. "Privacy and Marketing Externalities: Evidence from Do Not Call," Management Science, INFORMS, vol. 61(12), pages 2982-3000, December.
    7. Simon P. Anderson & André de Palma, 2012. "Competition for attention in the Information (overload) Age," RAND Journal of Economics, RAND Corporation, vol. 43(1), pages 1-25, March.
    8. Eran Reshef & Eilon Solan, 2005. "Analysis of Do-Not-Spam Registry," Discussion Papers 1411, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    9. Alexandre de Corniere, 2013. "Search Advertising," Economics Series Working Papers 649, University of Oxford, Department of Economics.
    10. Yue Wu, 2024. "Creation, Consumption, and Control of Sensitive Content," Marketing Science, INFORMS, vol. 43(4), pages 885-902, July.
    11. Peitz, Martin & Schuett, Florian, 2016. "Net neutrality and inflation of traffic," International Journal of Industrial Organization, Elsevier, vol. 46(C), pages 16-62.
    12. Rodriguez, Virginie & Sangle-Ferriere, Marion, 2023. "Do supermarkets’ emails have any value for their customers? The effect of emails’ content and interestingness on customers’ attitude and engagement," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    13. J. Miguel Villas-Boas, 2009. "Product Variety and Endogenous Pricing with Evaluation Costs," Management Science, INFORMS, vol. 55(8), pages 1338-1346, August.
    14. Matej Kovač & Vesna Žabkar, 2020. "Do Social Media and E-Mail Engagement Impact Reputation and Trust-Driven Behavior?," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 32(1), pages 9-25.
    15. Satinder Kumar & Rishi Raj Sharma, 2014. "An Empirical Analysis of Unsolicited Commercial E-mail," Paradigm, , vol. 18(1), pages 1-19, June.
    16. Florian Hoffmann & Roman Inderst & Marco Ottaviani, 2020. "Persuasion Through Selective Disclosure: Implications for Marketing, Campaigning, and Privacy Regulation," Management Science, INFORMS, vol. 66(11), pages 4958-4979, November.
    17. Jain, Geetika & Paul, Justin & Shrivastava, Archana, 2021. "Hyper-personalization, co-creation, digital clienteling and transformation," Journal of Business Research, Elsevier, vol. 124(C), pages 12-23.
    18. Saur, Marc P. & Schlatterer, Markus G. & Schmitt, Stefanie Y., 2022. "Limited perception and price discrimination in a model of horizontal product differentiation," Games and Economic Behavior, Elsevier, vol. 134(C), pages 151-168.
    19. Jean Samuel Beuscart & Kevin Mellet, 2008. "Business Models of the Web 2.0: Advertising or The Tale of Two Stories," Post-Print hal-03459866, HAL.
    20. Alexandre de Cornière, 2009. "Targeted advertising with consumer search: an economic analysis of keywords advertising," Working Papers halshs-00575074, HAL.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:sysdyn:v:24:y:2008:i:3:p:377-405. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1111/0883-7066 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.