Comparative Advante and Efficient Advertising in the Attention Economy

Bernardo Huberman and Fang Wu

MPRA Paper from University Library of Munich, Germany

Abstract: We analyze the problem that enterprises face when having to decide on the most effective way to advertise several items belonging to their inventories within the company’s webpages. We show that the ability to arbitrarily partition a website among items leads to a comparative advantage among webpages which can be exploited so as to maximize the total utility of the enterprise. This result, which also applies to the case of several competitive providers, is then extended to dynamical scenarios where both the advertising allocation and the exposure levels vary with time.

Keywords: attention economy; comparative advantage; advertising (search for similar items in EconPapers)
JEL-codes: M3 M37 (search for similar items in EconPapers)
Date: 2006-11-03
New Economics Papers: this item is included in nep-mic and nep-mkt
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