IDEAS home Printed from https://ideas.repec.org/a/eee/iepoli/v22y2010i3p276-286.html
   My bibliography  Save this article

Inducing search by periodic advertising

Author

Listed:
  • Glazer, Amihai
  • Hassin, Refael

Abstract

A person engaged in search may be uncertain whether the good or job he seeks is still available. Some people may therefore search when the job or good is unavailable; others may stop searching too early. A seller or employer who wants individuals to search should therefore periodically announce that the position or good is still available. The profit-maximizing strategy, however, differs from the socially-optimal one. Online advertising, which allows immediate updating of information by the seller or employer, also alleviates the problem of excessive search. But the seller may have insufficient incentive to adopt online announcements.

Suggested Citation

  • Glazer, Amihai & Hassin, Refael, 2010. "Inducing search by periodic advertising," Information Economics and Policy, Elsevier, vol. 22(3), pages 276-286, July.
    • Handle: RePEc:eee:iepoli:v:22:y:2010:i:3:p:276-286
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167-6245(10)00016-8
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Prasad A. Naik & Murali K. Mantrala & Alan G. Sawyer, 1998. "Planning Media Schedules in the Presence of Dynamic Advertising Quality," Marketing Science, INFORMS, vol. 17(3), pages 214-235.
    2. Samuelson, William F., 1985. "Competitive bidding with entry costs," Economics Letters, Elsevier, vol. 17(1-2), pages 53-57.
    3. Ulrich Doraszelski & Sarit Markovich, 2007. "Advertising dynamics and competitive advantage," RAND Journal of Economics, RAND Corporation, vol. 38(3), pages 557-592, September.
    4. Lippman, Steven A & McCall, John J, 1976. "The Economics of Job Search: A Survey," Economic Inquiry, Western Economic Association International, vol. 14(3), pages 347-368, September.
    5. McAfee, R. Preston & McMillan, John, 1987. "Auctions with entry," Economics Letters, Elsevier, vol. 23(4), pages 343-347.
    6. S. Christian Albright, 1977. "A Bayesian Approach to a Generalized House Selling Problem," Management Science, INFORMS, vol. 24(4), pages 432-440, December.
    7. Morgan, Peter & Manning, Richard, 1985. "Optimal Search," Econometrica, Econometric Society, vol. 53(4), pages 923-944, July.
    8. Feigin, Paul & Landsberger, Michael, 1981. "The existence and properties of a stationary distribution for unemployment when job search is sequential," Journal of Economic Dynamics and Control, Elsevier, vol. 3(1), pages 329-341, November.
    9. Daron Acemoglu & Robert Shimer, 2000. "Wage and Technology Dispersion," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 67(4), pages 585-607.
    10. Jean-Pierre Dubé & Günter Hitsch & Puneet Manchanda, 2005. "An Empirical Model of Advertising Dynamics," Quantitative Marketing and Economics (QME), Springer, vol. 3(2), pages 107-144, June.
    11. Lippman, Steven A & McCall, John J, 1976. "The Economics of Job Search: A Survey: Part I," Economic Inquiry, Western Economic Association International, vol. 14(2), pages 155-189, June.
    12. Robert, Jacques & Stahl, Dale O, II, 1993. "Informative Price Advertising in a Sequential Search Model," Econometrica, Econometric Society, vol. 61(3), pages 657-686, May.
    13. John Cawley, 2001. "A Guide (and Advice) for Economists on the U. S. Junior Academic Job Market," Labor and Demography 0109001, University Library of Munich, Germany, revised 02 Sep 2002.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Laura J. Kornish & Karl T. Ulrich, 2011. "Opportunity Spaces in Innovation: Empirical Analysis of Large Samples of Ideas," Management Science, INFORMS, vol. 57(1), pages 107-128, January.
    2. Pantelis P. Analytis & Amit Kothiyal & Konstantinos Katsikopoulos, 2014. "Multi-attribute utility models as cognitive search engines," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 9(5), pages 403-419, September.
    3. Gatti, J. Rupert J., 1999. "Multi-Commodity Consumer Search," Journal of Economic Theory, Elsevier, vol. 86(2), pages 219-244, June.
    4. Simon P. Anderson & Régis Renault & Claude Jessua, 1996. "Produits différenciés et information imparfaite des consommateurs," Revue Économique, Programme National Persée, vol. 47(3), pages 425-435.
    5. Christelle Garrouste & Cyrille Piatecki & Yvan Stroppa, 2021. "Matching dynamics and optima in a multi-agents labor market setting, 2015," Working Papers hal-03245585, HAL.
    6. Lester, Benjamin & Visschers, Ludo & Wolthoff, Ronald, 2017. "Competing with asking prices," Theoretical Economics, Econometric Society, vol. 12(2), May.
    7. repec:cup:judgdm:v:9:y:2014:i:5:p:403-419 is not listed on IDEAS
    8. Bruce Carlin & Arna Olafsson & Michaela Pagel, 2017. "FinTech Adoption Across Generations: Financial Fitness in the Information Age," NBER Working Papers 23798, National Bureau of Economic Research, Inc.
    9. Maarten Janssen & Alexei Parakhonyak, 2014. "Consumer search markets with costly revisits," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 55(2), pages 481-514, February.
    10. Timothy N. Cason & Shakun D. Mago, 2010. "Costly Buyer Search In Laboratory Markets With Seller Advertising," Journal of Industrial Economics, Wiley Blackwell, vol. 58(2), pages 424-449, June.
    11. Burdett, Kenneth & Cunningham, Elizabeth J, 1998. "Toward a Theory of Vacancies," Journal of Labor Economics, University of Chicago Press, vol. 16(3), pages 445-478, July.
    12. Poblete, Joaquín & Spulber, Daniel, 2017. "Managing innovation: Optimal incentive contracts for delegated R&D with double moral hazard," European Economic Review, Elsevier, vol. 95(C), pages 38-61.
    13. Adam Sanjurjo, 2015. "Search, Memory, and Choice Error: An Experiment," PLOS ONE, Public Library of Science, vol. 10(6), pages 1-16, June.
    14. Benny Moldovanu & Alex Gershkov, 2008. "The Trade-off Between Fast Learning and Dynamic Efficiency," 2008 Meeting Papers 348, Society for Economic Dynamics.
    15. Wolfgang Stadje, 1997. "An optimal stopping problem with two levels of incomplete information," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 45(1), pages 119-131, February.
    16. Sofronov, Georgy, 2013. "An optimal sequential procedure for a multiple selling problem with independent observations," European Journal of Operational Research, Elsevier, vol. 225(2), pages 332-336.
    17. Benjamin Lester & Ludo Visschers & Ronald Wolthoff, 2014. "Competing with Asking Prices (first version)," Edinburgh School of Economics Discussion Paper Series 243, Edinburgh School of Economics, University of Edinburgh.
    18. Grosfeld-Nir, Abraham & Sarne, David & Spiegler, Israel, 2009. "Modeling the search for the least costly opportunity," European Journal of Operational Research, Elsevier, vol. 197(2), pages 667-674, September.
    19. Subal Kumbhakar & Christopher Parmeter, 2009. "The effects of match uncertainty and bargaining on labor market outcomes: evidence from firm and worker specific estimates," Journal of Productivity Analysis, Springer, vol. 31(1), pages 1-14, February.
    20. MacCall, John & Lippman, Steven A., 1982. "An equilibrium model of turnover with belated information," Discussion Papers, Series I 167, University of Konstanz, Department of Economics.
    21. Sanjurjo, Adam, 2017. "Search with multiple attributes: Theory and empirics," Games and Economic Behavior, Elsevier, vol. 104(C), pages 535-562.

    More about this item

    Keywords

    Search Advertising Vacancies;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:iepoli:v:22:y:2010:i:3:p:276-286. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505549 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.