Inefficiencies in Digital Advertising Markets

Digital advertising markets are growing and attracting increased scrutiny. This article explores four market inefficiencies that remain poorly understood: ad effect measurement, frictions between and within advertising channel members, ad blocking, and ad fraud. Although these topics are not unique to digital advertising, each manifests in unique ways in markets for digital ads. The authors identify relevant findings in the academic literature, recent developments in practice, and promising topics for future research

(How) did attack advertisements increase affordable care act enrollments?

We examine the effects of exposure to negative information in attack advertisements in the context of Affordable Care Act (ACA) and Common Core (CC) education standards and show that they lead to an increase in the ACA enrollments and support of the CC standards. To explain this effect, we rely on the knowledge-gap theory and show that individuals who were exposed to more attack advertisements were also more likely to independently seek information, become more knowledgeable, and consequently support these subjects. In addition to an observational study, to test our hypotheses on the link between exposure to negative information, curiosity, and shifts in knowledge and support levels, we design and conduct a randomized experiment using a sample of 300 unique individuals. Our multi-methods research contributes to marketing literature by documenting a rare occasion in which exposure to attack advertisements leads to increased demand and unveiling the mechanisms through which this effect takes place

Estimate of Search Cost Frictions in the British Electricity Market

This paper studies consumer search and pricing behaviour in the British domestic electricity market following its opening to competition in 1999. We develop a sequential search model in which an incumbent and an entrant group compete for consumers who find it costly to obtain information on prices other than from their current supplier. We use a large data set on prices and input costs to structurally estimate the model. Our estimates indicate that consumer search costs must be relatively high in order to rationalize observed pricing patterns. We confront our estimates with observed switching behaviour and find they match well.electricity, consumer search, price competition

Online social network member attitude toward online advertising formats

The predicted growth of advertising in online social networks and the cluttered online advertising environment dictates that the advertising industry be concerned about how online social network members view online advertising formats. The question this research seeks to answer is what are the attitudes of online social network members toward online advertising formats in their online social networks? The findings indicate that the leader board, blogs, video, brand page, and brand channel formats are perceived to have the most positive attributes. Pop-ups, expandable and floating ads were perceived to have the most negative attributes. The findings also introduce a new attribute that influences attitude, placement. The research presents several implications for advertisers and identifies areas for future research

Estimation of Search Frictions in the British Electricity Market

This paper studies consumer search and pricing behaviour in the British domestic electricity market following its opening to competition in 1999. We develop a sequential search model in which an incumbent and an entrant group compete for consumers who nd it costly to obtain information on prices other than from their current supplier. We use a large data set on prices and input costs to structurally estimate the model. Our estimates indicate that consumer search costs must be relatively high in order to rationalize observed pricing patterns. We confront our stimates with observed switching behaviour and nd they match well. Keywords:electricity ; consumer search ; price competition JEL Classification: C14 ; D83 ; L13

The Chicago Counter-Revolution and the Sociology of Economic Knowledge

This chapter is concerned with the internal phenomenon. One model that can be invoked to explain this internal phenomenon is the classical process whereby evidence is patiently accumulated until the weight of the argument favours one side or another. Alternatively, Stigler\u27s \u27model\u27 of the sociology of economic knowledge construction and destruction can be used to examine the internal opinion-changing process in the transition from the overwhelming defeat of Barry Goldwater in 1964 to the overwhelming victory of Ronald Reagan in 1980 - two men with essentially the same programme and the same message (Friedman and Friedman 1982, viii). ISBN: 033373045