Details
| Original language | English |
|---|---|
| Article number | 101047 |
| Number of pages | 10 |
| Journal | Information economics and policy |
| Volume | 64 |
| Early online date | 4 Aug 2023 |
| Publication status | Published - Sept 2023 |
Abstract
Keywords
- Excessive targeting, Targeted advertising, Technology investments, Welfare
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)
- Economics and Econometrics
- Environmental Science(all)
- Management, Monitoring, Policy and Law
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In: Information economics and policy, Vol. 64, 101047, 09.2023.
Research output: Contribution to journal › Article › Research › peer review
}
TY - JOUR
T1 - A model of endogenous targeting in duopoly
AU - Siemering, Christian
PY - 2023/9
Y1 - 2023/9
N2 - The paper investigates welfare effects of targeted advertising in a duopoly. To this end, a game-theoretical model is proposed in which firms can make costly investments in their targeting technology. It can be shown that ex ante identical firms use different technologies in every pure-strategy equilibrium of the technology game. If firms target the same group of consumers, the low-technology firm could increase overall welfare by using a better technology. However, this leads to lower industry profits due to tougher competition among firms.
AB - The paper investigates welfare effects of targeted advertising in a duopoly. To this end, a game-theoretical model is proposed in which firms can make costly investments in their targeting technology. It can be shown that ex ante identical firms use different technologies in every pure-strategy equilibrium of the technology game. If firms target the same group of consumers, the low-technology firm could increase overall welfare by using a better technology. However, this leads to lower industry profits due to tougher competition among firms.
KW - Excessive targeting
KW - Targeted advertising
KW - Technology investments
KW - Welfare
UR - http://www.scopus.com/inward/record.url?scp=85171624346&partnerID=8YFLogxK
U2 - 10.1016/j.infoecopol.2023.101047
DO - 10.1016/j.infoecopol.2023.101047
M3 - Article
AN - SCOPUS:85171624346
VL - 64
JO - Information economics and policy
JF - Information economics and policy
SN - 0167-6245
M1 - 101047
ER -