On the strategic use of attention grabbers

, () and , ()
Additional contact information
,: Department of Economics, Brown University
,: Department of Economics, University College London and Tel Aviv University
Authors registered in the RePEc Author Service: Ran Spiegler ()

Theoretical Economics, 2011, vol. 6, issue 1

Abstract: When a firm decides which products to offer or put on display, it takes into account the products' ability to attract attention to the brand name as a whole. Thus, the value of a product to the firm emanates from the consumer demand it directly meets, as well as the indirect demand it generates for the firms' other products. We explore this idea in the context of a stylzed model of competition between media content providers (broadcast TV channels, internet portals, newspapers) over consumers with limited attention. We characterize the equilibrium use of products as attention grabbers and its implications for consumer conversion, industry profits and (mostly vertical) product differentiation.

Keywords: Bounded rationality; irrelevant alternatives; limited attention; consideration sets; preferences over menus; marketing; persuasion; conversion rates; media platforms (search for similar items in EconPapers)
JEL-codes: C79 D03 M39 (search for similar items in EconPapers)
Date: 2011-01-23
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (39)

Downloads: (external link)
http://econtheory.org/ojs/index.php/te/article/viewFile/20110127/4787/175 (application/pdf)

Related works:
Working Paper: On the Strategic Use of Attention Grabbers (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:the:publsh:758

Access Statistics for this article

Theoretical Economics is currently edited by Simon Board, Todd D. Sarver, Juuso Toikka, Rakesh Vohra, Pierre-Olivier Weill

More articles in Theoretical Economics from Econometric Society
Bibliographic data for series maintained by Martin J. Osborne ().