Dynamic informative advertising of new experience goods
This paper analyzes the optimal advertising and price policies of a monopolist who sells a new experience good over time to a population of heterogeneous, forward-looking buyers. We consider informative advertising that can complement or substitute for learning-by-purchasing, and we show that the ad...
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| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
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International Food Policy Research Institute
2011
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| Acceso en línea: | https://hdl.handle.net/10568/154297 |
| _version_ | 1855520691266256896 |
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| author | Saak, Alexander E. |
| author_browse | Saak, Alexander E. |
| author_facet | Saak, Alexander E. |
| author_sort | Saak, Alexander E. |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | This paper analyzes the optimal advertising and price policies of a monopolist who sells a new experience good over time to a population of heterogeneous, forward-looking buyers. We consider informative advertising that can complement or substitute for learning-by-purchasing, and we show that the advertising intensity always peaks during the early stages when the price extracts surplus from the buyers, who are yet to learn their valuation for the good. We also show that even though informative advertising may temporarily raise prices and slow down the learning process, an advertising ban can reduce welfare. |
| format | Artículo preliminar |
| id | CGSpace154297 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2011 |
| publishDateRange | 2011 |
| publishDateSort | 2011 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1542972025-11-06T05:46:28Z Dynamic informative advertising of new experience goods Saak, Alexander E. advertising learning monopolies information This paper analyzes the optimal advertising and price policies of a monopolist who sells a new experience good over time to a population of heterogeneous, forward-looking buyers. We consider informative advertising that can complement or substitute for learning-by-purchasing, and we show that the advertising intensity always peaks during the early stages when the price extracts surplus from the buyers, who are yet to learn their valuation for the good. We also show that even though informative advertising may temporarily raise prices and slow down the learning process, an advertising ban can reduce welfare. 2011 2024-10-01T14:00:42Z 2024-10-01T14:00:42Z Working Paper https://hdl.handle.net/10568/154297 en Open Access application/pdf International Food Policy Research Institute Saak, Alexander E. 2011. Dynamic informative advertising of new experience goods. IFPRI Discussion Paper 1062. https://hdl.handle.net/10568/154297 |
| spellingShingle | advertising learning monopolies information Saak, Alexander E. Dynamic informative advertising of new experience goods |
| title | Dynamic informative advertising of new experience goods |
| title_full | Dynamic informative advertising of new experience goods |
| title_fullStr | Dynamic informative advertising of new experience goods |
| title_full_unstemmed | Dynamic informative advertising of new experience goods |
| title_short | Dynamic informative advertising of new experience goods |
| title_sort | dynamic informative advertising of new experience goods |
| topic | advertising learning monopolies information |
| url | https://hdl.handle.net/10568/154297 |
| work_keys_str_mv | AT saakalexandere dynamicinformativeadvertisingofnewexperiencegoods |