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Creator: Roig, Guillem Publication: Berlin Boston, Mass.: ˜Deœ Gruyter, 2024
URN: urn:nbn:de:101:1-2412151657251.245869214621
Path:
˜Theœ Role of Informative Advertising in Aligning Preferences Over Product Design

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The B.E. journal of theoretical economics

Periodical

Title:
The B.E. journal of theoretical economics
Publication:
Berlin Boston, Mass.: De Gruyter
Note:
Gesehen am 04.12.20
C!URL-Ä(06-02-12);C:auf der Degruyter-Seite werden bei den früheren Jg. (1.2001ff) die Artikel der darin aufgegangenen Zeitschriften aufgeführt, daher wurde der ev obiger Veröffentlichung nicht auf 1.2001 zurückdatiert;355!URL-Ä(04-12-20)
Scope:
Online-Ressource
ISSN:
1935-1704
ZDB-ID:
2268339-2 ZDB
VÖBB-Katalog:
35340968
Keywords:
Zeitschrift
Classification:
Sozialwissenschaften
Wirtschaft
Technik
Collection:
Sozialwissenschaften
Wirtschaft
Technik
Copyright:
Rights reserved
Accessibility:
Eingeschränkter Zugang mit Nutzungsbeschränkungen
Title:
The B.E. journal of theoretical economics
Publication:
Berlin Boston, Mass.: De Gruyter
Note:
Gesehen am 04.12.20
C!URL-Ä(06-02-12);C:auf der Degruyter-Seite werden bei den früheren Jg. (1.2001ff) die Artikel der darin aufgegangenen Zeitschriften aufgeführt, daher wurde der ev obiger Veröffentlichung nicht auf 1.2001 zurückdatiert;355!URL-Ä(04-12-20)
Scope:
Online-Ressource
ISSN:
1935-1704
ZDB-ID:
2268339-2 ZDB
VÖBB-Katalog:
35340968
Keywords:
Zeitschrift
Classification:
Sozialwissenschaften
Wirtschaft
Technik
Collection:
Sozialwissenschaften
Wirtschaft
Technik
Copyright:
Rights reserved
Accessibility:
Eingeschränkter Zugang mit Nutzungsbeschränkungen

˜Theœ Role of Informative Advertising in Aligning Preferences Over Product Design

Article

Author:
Roig, Guillem
Title:
˜Theœ Role of Informative Advertising in Aligning Preferences Over Product Design
Publication:
Berlin Boston, Mass.: ˜Deœ Gruyter, 2024
Language:
English
Information:
Abstract: This article explores the relationship between product design and advertising, traditionally viewed as distinct business decisions. I build upon the seminal work of Matutes and Regibeau (1988. “Mix and Match: Product Compatibility Without Network Externalities.” The RAND Journal of Economics 19 (2): 221–34), where firms produce components that combine to form product systems, and introduce the necessity for firms to advertise their products to create consumer awareness. I find that a firm’s incentive to advertise increases with product compatibility. Greater product compatibility reduces competition, encouraging firms to broaden their market presence through advertising. Contrary to Matutes and Regibeau, when advertising influences product awareness, consumers prefer products with moderate compatibility over those that are entirely incompatible. Consequently, advertising aligns the compatibility preferences of both firms and consumers.
Scope:
Online-Ressource
Note:
Kein Open Access
Archivierung/Langzeitarchivierung gewährleistet
Keywords:
product compatibility ; informative advertising ; preference alignment
Classification:
Sozialwissenschaften
Wirtschaft
Technik
Sonstiges
URN:
urn:nbn:de:101:1-2412151657251.245869214621
Collection:
Sozialwissenschaften
Wirtschaft
Technik
Sonstiges
Copyright:
Rights reserved
Accessibility:
Eingeschränkter Zugang mit Nutzungsbeschränkungen
Author:
Roig, Guillem
Title:
˜Theœ Role of Informative Advertising in Aligning Preferences Over Product Design
Publication:
Berlin Boston, Mass.: ˜Deœ Gruyter, 2024
Language:
English
Information:
Abstract: This article explores the relationship between product design and advertising, traditionally viewed as distinct business decisions. I build upon the seminal work of Matutes and Regibeau (1988. “Mix and Match: Product Compatibility Without Network Externalities.” The RAND Journal of Economics 19 (2): 221–34), where firms produce components that combine to form product systems, and introduce the necessity for firms to advertise their products to create consumer awareness. I find that a firm’s incentive to advertise increases with product compatibility. Greater product compatibility reduces competition, encouraging firms to broaden their market presence through advertising. Contrary to Matutes and Regibeau, when advertising influences product awareness, consumers prefer products with moderate compatibility over those that are entirely incompatible. Consequently, advertising aligns the compatibility preferences of both firms and consumers.
Scope:
Online-Ressource
Note:
Kein Open Access
Archivierung/Langzeitarchivierung gewährleistet
Keywords:
product compatibility ; informative advertising ; preference alignment
Classification:
Sozialwissenschaften
Wirtschaft
Technik
Sonstiges
URN:
urn:nbn:de:101:1-2412151657251.245869214621
Collection:
Sozialwissenschaften
Wirtschaft
Technik
Sonstiges
Copyright:
Rights reserved
Accessibility:
Eingeschränkter Zugang mit Nutzungsbeschränkungen
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