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Managing the advertising intensity: The role of the marginal disutility from advertising

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  • Sun, Cheng

Abstract

Using a monopolistic framework, this study finds higher dispersion induces an inverted U-shaped advertising intensity in the Freemium model, but an increasing one in the ad-funded model—with the interaction between the advertising and premium markets playing a crucial role.

Suggested Citation

  • Sun, Cheng, 2025. "Managing the advertising intensity: The role of the marginal disutility from advertising," Economics Letters, Elsevier, vol. 255(C).
    • Handle: RePEc:eee:ecolet:v:255:y:2025:i:c:s0165176525004173
    DOI: 10.1016/j.econlet.2025.112580
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies

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