| By: |
Ad Clutter, Time Use and Media Diversity;
Martin Peitz |
| Abstract: |
We introduce advertising congestion along with a time-use model of consumer
choice among media. Both consumers and advertisers multi-home. Higher
equilibrium advertising levels ensue on less popular media platforms because
platforms treat consumer attention as a common property resource: smaller
platforms internalize less the congestion from advertising and so advertise
more. Platform entry raises the ad nuisance “price” to consumers and
diminishes the quality of the consumption experience on all platforms. With
symmetric platforms, entry still leads to higher consumer benefits. However,
entry of less attractive platforms can increase ad nuisance levels so much
that consumers are worse off. |
| Keywords: |
media economics, advertising clutter, limited attention, information congestion, two-sided markets |
| JEL: |
D43 L13 |
| Date: |
2019–12 |
| URL: |
http://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2019_140&r=all |