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• W1566856505 abstract "I analyze an equilibrium search model in a duopoly setting with bilateral heterogeneities in production and search costs in which firms can advertise by announcing price. I compare the market advertising level to the socially optimal level, where I find that costly search can improve welfare and that firms may under- or over-advertise relative to the social optimum depending on the costs of search. The results suggest that, in markets with sufficiently low search costs, firms are likely over-advertising relative to the socially optimal level, and vice versa for markets with sufficiently high search costs." @default.
• W1566856505 created "2016-06-24" @default.
• W1566856505 creator A5039633743 @default.
• W1566856505 date "2016-04-01" @default.
• W1566856505 modified "2023-09-24" @default.
• W1566856505 title "Advertising intensity and welfare in an equilibrium search model" @default.
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• W1566856505 doi "https://doi.org/10.1016/j.econlet.2016.01.022" @default.
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