Managing the advertising intensity: The role of the marginal disutility from advertising

Cheng Sun

Economics Letters, 2025, vol. 255, issue C

Abstract: Using a monopolistic framework, this study finds higher dispersion induces an inverted U-shaped advertising intensity in the Freemium model, but an increasing one in the ad-funded model—with the interaction between the advertising and premium markets playing a crucial role.

Keywords: Freemium model; Dispersion; Demand rotation; Marginal disutility from advertising (search for similar items in EconPapers)
JEL-codes: D42 L12 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:255:y:2025:i:c:s0165176525004173

DOI: 10.1016/j.econlet.2025.112580

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