Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/150150
Authors: 
Spiegler, Ran
Eliaz, Kfir
Year of Publication: 
2011
Citation: 
[Journal:] Theoretical Economics [ISSN:] 1555-7561 [Volume:] 6 [Year:] 2011 [Issue:] 1 [Pages:] 127-155
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.
Subjects: 
Bounded rationality
irrelevant alternatives
limited attention
consideration sets
preferences over menus
marketing
persuasion
conversion rates
media platforms
JEL: 
C79
D03
M39
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc/3.0/
Document Type: 
Article

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