Targeted information and limited attention

• 成果类型: Article
• 署名作者: Hefti, Andreas; Liu, Shuo
• 署名单位: Zurich University of Applied Sciences; University of Zurich; Peking University
• 刊物名称: RAND JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0741-6261
• DOI: 10.1111/1756-2171.12319
• 发表日期: 2020
• 页码: 402-420
• 关键词: advertising markets; online

摘要

We examine the implications of limited consumer attention for the targeting decisions of competing firms. Limited attention alters the strategic role of information provision as firms may become incentivized to behave as mass advertisers, despite perfect targeting abilities. We analyze the consequences of limited attention for targeting, strategic pricing, market shares, attention competition between firms, and the value of marketing data to firms. Accounting for limited attention in an otherwise standard targeting framework can explain several recent key issues from the advertising industry, such as consumer-side information overload or the increased usage of ad blocking tools.