Flexible Demand Manipulation
Fuente:
arXiv
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| Hauptverfasser: | , |
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| Format: | Preprint |
| Veröffentlicht: |
2024
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| Schlagworte: | |
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| _version_ | 1866915319052763136 |
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| author | Dai, Yifan Koh, Andrew |
| author_facet | Dai, Yifan Koh, Andrew |
| contents | We develop a simple framework to analyze how targeted persuasive advertising shapes market power and welfare. A designer flexibly manipulates the demand curve by influencing individual valuations at a cost. A monopolist prices against this manipulated demand curve. We fully characterize the form of optimal advertising plans under ex-ante and ex-post welfare measures. Flexibility per se is powerful, and can substantially harm or benefit consumers vis-a-vis uniform advertising. We discuss implications for regulation, intermediation, and the joint design of manipulation and information. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2410_24191 |
| institution | arXiv |
| publishDate | 2024 |
| record_format | arxiv |
| spellingShingle | Flexible Demand Manipulation Dai, Yifan Koh, Andrew Theoretical Economics Computer Science and Game Theory We develop a simple framework to analyze how targeted persuasive advertising shapes market power and welfare. A designer flexibly manipulates the demand curve by influencing individual valuations at a cost. A monopolist prices against this manipulated demand curve. We fully characterize the form of optimal advertising plans under ex-ante and ex-post welfare measures. Flexibility per se is powerful, and can substantially harm or benefit consumers vis-a-vis uniform advertising. We discuss implications for regulation, intermediation, and the joint design of manipulation and information. |
| title | Flexible Demand Manipulation |
| topic | Theoretical Economics Computer Science and Game Theory |
| url | https://arxiv.org/abs/2410.24191 |