On the Strategic Use of Attention Grabbers
When a firm decides which products to offer or put on display, it takes into account the products' ability to attract attention to the brand name as a whole. Thus, the value of a product to the firm emanates from the consumer demand it directly meets, as well as the indirect demand it generates for the firms' other products. We explore this idea in the context of a stylized model of competition between media content providers (broadcast TV channels, internet portals, newspapers) over consumers with limited attention. We characterize the equilibrium use of products as attention grabbers and its implications for consumer conversion, industry profits and (mostly vertical) product differentiation.
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- Yusufcan Masatlioglu & Daisuke Nakajima & Erkut Y. Ozbay, 2012.
American Economic Review,
American Economic Association, vol. 102(5), pages 2183-2205, August.
- Yusufcan Masatlioglu & Daisuke Nakajima & Erkut Ozbay, 2009. "Revealed Attention," NajEcon Working Paper Reviews 814577000000000409, www.najecon.org.
- Nakajima, Daisuke & Masatlioglu, Yusufcan, 2013. "Choice by iterative search," Theoretical Economics, Econometric Society, vol. 8(3), September.
- Mark Armstrong, 2008. "Interactions between Competition and Consumer Policy," CPI Journal, Competition Policy International, vol. 4.
- Armstrong, Mark, 2008. "Interactions between competition and consumer policy," MPRA Paper 7258, University Library of Munich, Germany.
- Zauberman, Gal, 2003. " The Intertemporal Dynamics of Consumer Lock-In," Journal of Consumer Research, Oxford University Press, vol. 30(3), pages 405-419, December. Full references (including those not matched with items on IDEAS)
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