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Information Congestion

  • Simon P. Anderson

    ()

  • André de Palma

    ()

Advertising messages compete for scarce attention. ?Junk? mail, ?spam? e-mail, and telemarketing calls need both parties to exert effort to generate transactions. Message recipients supply attention depending on average message beneÞt. Senders are motivated by proÞts. Costlier message transmission may improve message quality so more messages are examined. Too many messages may be sent, or the wrong ones. A Do-Not-Call policy beats a ban, but too many individuals opt out. A monopoly gatekeeper performs better than personal access pricing if nuisance costs are moderate. The medium is the message with multiple channels, and there is excessive indiscriminate mailing.

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File URL: http://www.virginia.edu/economics/RePEc/vir/virpap/papers/virpap364.pdf
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Paper provided by University of Virginia, Department of Economics in its series Virginia Economics Online Papers with number 364.

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Length: 39 pages
Date of creation: Jun 2006
Date of revision:
Handle: RePEc:vir:virpap:364
Contact details of provider: Web page: http://www.virginia.edu/economics/home.html

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  1. Simon P. Anderson & Stephen Coate, 2003. "Market Provision of Broadcasting: A Welfare Analysis," Virginia Economics Online Papers 358, University of Virginia, Department of Economics.
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  14. Michael Spence, 1976. "Product Selection, Fixed Costs, and Monopolistic Competition," Review of Economic Studies, Oxford University Press, vol. 43(2), pages 217-235.
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  22. Gerard R. Butters, 1977. "Equilibrium Distributions of Sales and Advertising Prices," Review of Economic Studies, Oxford University Press, vol. 44(3), pages 465-491.
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