Comparative Advante and Efficient Advertising in the Attention Economy
We 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.
|Date of creation:||03 Nov 2006|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Falkinger, Josef, 2005. "Limited Attention as the Scarce Resource in an Information-Rich Economy," IZA Discussion Papers 1538, Institute for the Study of Labor (IZA).
- Rosen, Sherwin, 1978. "Substitution and Division of Labour," Economica, London School of Economics and Political Science, vol. 45(179), pages 235-50, August.
- Josef Falkinger, 2003.
CESifo Working Paper Series
1079, CESifo Group Munich.
- Arjo Klamer & Hendrik van Dalen, 2001.
"Attention and the art of scientific publishing,"
Journal of Economic Methodology,
Taylor & Francis Journals, vol. 9(3), pages 289-315.
- Gustav Feichtinger & Richard F. Hartl & Suresh P. Sethi, 1994. "Dynamic Optimal Control Models in Advertising: Recent Developments," Management Science, INFORMS, vol. 40(2), pages 195-226, February.
- David M. Levy, 1988. "The Market for Fame and Fortune," History of Political Economy, Duke University Press, vol. 20(4), pages 615-625, Winter.
- V. Srinivasan, 1976. "Decomposition of a Multi-Period Media Scheduling Model in Terms of Single Period Equivalents," Management Science, INFORMS, vol. 23(4), pages 349-360, December.
- Sattinger, Michael, 1978. "Comparative Advantage in Individuals," The Review of Economics and Statistics, MIT Press, vol. 60(2), pages 259-67, May.
- Gabaix, Xavier & Laibson, David Isaac & Moloche, Guillermo & Stephen, Weinberg, 2003. "The allocation of attention: theory and evidence," MPRA Paper 47339, University Library of Munich, Germany.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:928. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.