Dynamic Informative Advertising of New Experience Goods

Alexander Saak ()

No 61326, 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado from Agricultural and Applied Economics Association

Abstract: This paper analyzes the optimal informative advertising and price policies of a monopolist who sells a new experience good over time to a population of heterogeneous buyers. Under certain conditions, the advertising rate first increases and then decreases over the marketing cycle with a peak occurring at the end of the introductory period when prices are low. Advertising lowers introductory prices but also shortens the period during which they are offered. Advertising raises the share of consumers who know their valuation in the long-run but not necessarily in the short-run

Keywords: Consumer/Household Economics; Industrial Organization; Marketing (search for similar items in EconPapers)
Pages: 39
Date: 2010-05-02
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https://ageconsearch.umn.edu/record/61326/files/Dy ... Selected%2011852.pdf (application/pdf)

Related works:
Journal Article: Dynamic Informative Advertising of New Experience Goods (2012)
Working Paper: Dynamic Informative Advertising of New Experience Goods (2011)
Working Paper: Dynamic informative advertising of new experience goods (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea10:61326

DOI: 10.22004/ag.econ.61326

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