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|
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- Arjo Klamer & Hendrik P. van Dalen, 2001. "Attention and the Art of Scientific Publishing," Tinbergen Institute Discussion Papers 01-022/1, Tinbergen Institute.
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CESifo Working Paper Series
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- 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).
- 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.
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