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A model of repeat advertising

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  • Sahuguet, Nicolas

Abstract

Advertising conveys information not only about product characteristics but also about the number of consumers who know about the product. More advertising may shift expectations towards a larger consumer base, increasing buyers' valuation when there are consumption externalities.

Suggested Citation

  • Sahuguet, Nicolas, 2011. "A model of repeat advertising," Economics Letters, Elsevier, vol. 111(1), pages 20-22, April.
    • Handle: RePEc:eee:ecolet:v:111:y:2011:i:1:p:20-22
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    References listed on IDEAS

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    8. Nelson, Philip, 1974. "Advertising as Information," Journal of Political Economy, University of Chicago Press, vol. 82(4), pages 729-754, July/Aug..
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    Cited by:

    1. C. Robert Clark & Ignatius J. Horstmann, 2013. "A model of advertising format competition: on the use of celebrities in ads," Canadian Journal of Economics, Canadian Economics Association, vol. 46(4), pages 1606-1630, November.

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