Eliaz, K; Spiegler, R; (2011) On the strategic use of attention grabbers. THEOR ECON , 6 (1) 127 - 155. 10.3982/TE758.
When a firm decides which products to offer or put on display, it takes into account the products' ability to attract attention to the brand name as a whole. Thus, the value of a product to the firmemanates from the consumer demand it directly meets, as well as the indirect demand it generates for the firms' other products. We explore this idea in the context of a stylized model of competition between media content providers (broadcast TV channels, internet portals, newspapers) over consumers with limited attention. We characterize the equilibrium use of products as attention grabbers and its implications for consumer conversion, industry profits, and (mostly vertical) product differentiation.
|Title:||On the strategic use of attention grabbers|
|Open access status:||An open access publication|
|Keywords:||Marketing, irrelevant alternatives, limited attention, consideration sets, bounded rationality, preferences over menus, persuasion, conversion rates, media platforms, BEHAVIOR|
|UCL classification:||UCL > School of Arts and Social Sciences > Faculty of Social and Historical Sciences > Economics|
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