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Is Targeted Advertising always Beneficial?

In: Econometric Methods and Their Applications in Finance, Macro and Related Fields

Author

Listed:
  • Nada Ben Elhadj-Ben Brahim
  • Rim Lahmandi-Ayed
  • Didier Laussel
Abstract
The following sections are included:IntroductionThe Model and Some Preliminary ResultsTargeted AdvertisingComparison with Random AdvertisingConclusionAppendixReferences

Suggested Citation

  • Nada Ben Elhadj-Ben Brahim & Rim Lahmandi-Ayed & Didier Laussel, 2014. "Is Targeted Advertising always Beneficial?," World Scientific Book Chapters, in: Kaddour Hadri & William Mikhail (ed.), Econometric Methods and Their Applications in Finance, Macro and Related Fields, chapter 20, pages 551-585, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789814513470_0020
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    1. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, April.
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    8. Lola Esteban & Agustín Gil & Jose M. Hernández, 2001. "Informative Advertising and Optimal Targeting in a Monopoly," Journal of Industrial Economics, Wiley Blackwell, vol. 49(2), pages 161-180, June.
    9. Hernandez-Garcia, Jose M., 1997. "Informative advertising, imperfect targeting and welfare," Economics Letters, Elsevier, vol. 55(1), pages 131-137, August.
    10. Gerard R. Butters, 1977. "Equilibrium Distributions of Sales and Advertising Prices," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 44(3), pages 465-491.
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    12. repec:bla:jindec:v:49:y:2001:i:2:p:161-80 is not listed on IDEAS
    13. Stahl II Dale O., 1994. "Oligopolistic Pricing and Advertising," Journal of Economic Theory, Elsevier, vol. 64(1), pages 162-177, October.
    14. Lola Esteban & Jose M. Hernandez, 2007. "Strategic Targeted Advertising and Market Fragmentation," Economics Bulletin, AccessEcon, vol. 12(10), pages 1-12.
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    Cited by:

    1. Jianqiang Zhang & Weijun Zhong & Shue Mei, 2012. "Competitive effects of informative advertising in distribution channels," Marketing Letters, Springer, vol. 23(3), pages 561-584, September.
    2. Roberto Burguet & Vaiva Petrikaitė, 2023. "Targeted advertising and costly consumer search," Economic Inquiry, Western Economic Association International, vol. 61(2), pages 430-450, April.
    3. Rosa-Branca Esteves & Joana Resende, 2016. "Competitive Targeted Advertising with Price Discrimination," Marketing Science, INFORMS, vol. 35(4), pages 576-587, July.
    4. Simon Anderson & Alicia Baik & Nathan Larson, 2023. "Price Discrimination in the Information Age: Prices, Poaching, and Privacy with Personalized Targeted Discounts," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 90(5), pages 2085-2115.
    5. Sridhar Moorthy & Shervin Shahrokhi Tehrani, 2023. "Targeting Advertising Spending and Price on the Hotelling Line," Marketing Science, INFORMS, vol. 42(6), pages 1057-1079, November.
    6. Wang, Wei & Li, Gang & Fung, Richard Y.K. & Cheng, T.C.E., 2019. "Mobile Advertising and Traffic Conversion: The Effects of Front Traffic and Spatial Competition," Journal of Interactive Marketing, Elsevier, vol. 47(C), pages 84-101.
    7. Li, Sanxi & Sun, Hailin & Yu, Jun, 2023. "Competitive targeted online advertising," International Journal of Industrial Organization, Elsevier, vol. 87(C).
    8. Rosa Brana Esteves & Joana Resende, 2017. "Personalized Pricing with Targeted Advertising: Who are the Winners?," NIPE Working Papers 02/2017, NIPE - Universidade do Minho.
    9. Rim Lahmandi-Ayed & Didier Laussel, 2024. "Random Informative Advertising with Vertically Differentiated Products," Games, MDPI, vol. 15(2), pages 1-29, March.
    10. Yue Shen & Weijun Zhong & Shue Mei, 2023. "Advertising strategies of competing firms considering consumer privacy concerns," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(4), pages 2424-2437, June.
    11. Stühmeier, Torben, 2012. "Target Advertising and Market Transparency," VfS Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62021, Verein für Socialpolitik / German Economic Association.
    12. Esteves, Rosa-Branca & Resende, Joana, 2019. "Personalized pricing and advertising: Who are the winners?," International Journal of Industrial Organization, Elsevier, vol. 63(C), pages 239-282.
    13. Rim Lahmandi-Ayed & Didier Laussel, 2024. "Random Informative Advertising with Vertically Differentiated Products," Post-Print hal-04678637, HAL.
    14. Hongjuan Song & Yushi Jiang, 2017. "Online Personalized Advertising Avoidance by Chinese Consumers: The Effect of Consumer Good Types," Noble International Journal of Business and Management Research, Noble Academic Publsiher, vol. 1(6), pages 107-117, June.
    15. Roberto Burguet & Vaiva Petrikaite, 2017. "Targeted Advertising and Costly Consumer Search," Working Papers 971, Barcelona School of Economics.
    16. Xiuxian Li & Pengwen Hou & Shuhua Zhang, 2023. "The optimal advertising strategy with differentiated targeted effect consumers," Annals of Operations Research, Springer, vol. 324(1), pages 1295-1336, May.
    17. Zhao Jiang & Wu Dan & Liu Jie, 2020. "Distinct role of targeting precision of Internet-based targeted advertising in duopolistic e-business firms’ heterogeneous consumers market," Electronic Commerce Research, Springer, vol. 20(2), pages 453-474, June.
    18. Andreas Hefti & Shuo Liu, 2020. "Targeted information and limited attention," RAND Journal of Economics, RAND Corporation, vol. 51(2), pages 402-420, June.
    19. Andreas Hefti & Shuo Liu, 2016. "Targeted information and limited attention," ECON - Working Papers 230, Department of Economics - University of Zurich, revised Dec 2019.
    20. Zhao Jiang & Dan Wu, 2022. "Targeting Precision in Imperfect Targeted Advertising: Implications for the Regulation of Market Structure and Efficiency," SAGE Open, , vol. 12(1), pages 21582440221, March.
    21. Siemering, Christian, 2023. "A model of endogenous targeting in duopoly," Information Economics and Policy, Elsevier, vol. 64(C).
    22. Zhang, Jianqiang & He, Xiuli, 2019. "Targeted advertising by asymmetric firms," Omega, Elsevier, vol. 89(C), pages 136-150.
    23. Li, Changying & Li, Youping & Zhang, Jianhu, 2023. "Targeted advertising with R&D rivalry," Mathematical Social Sciences, Elsevier, vol. 124(C), pages 24-34.

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    More about this item

    Keywords

    Financial Econometrics; Applied Econometrics; Econometric Theory and Methods;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising

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