Lunch seminar: Martin Peitz - University of Mannheim
2019-10-09 13:00 - 14:00 UTC
Ad Clutter, Time Use, and Media Diversity

Abstract:

We introduce advertising congestion along with a time-use model of consumer choice�among media. Both consumers and advertisers multi-home. Higher equilibrium advertising levels ensue on less popular media platforms because platforms treat consumer�attention as a common property resource: smaller platforms internalize less the congestion from advertising and so advertise more. Platform entry raises the ad nuisance ?price?�to consumers and diminishes the quality of the consumption experience on all platforms. With symmetric platforms, entry still leads to higher consumer benefits. However, entry�of less attractive platforms can increase ad nuisance levels so much that consumers are worse off.
