Simon P. Anderson () (Department of Economics, University of Virginia, PO Box 400182, Charlottesville VA 22904-4128, USA) André de Palma () (Member of the Institut Universitaire de France, ThEMA, Université de Cergy- Pontoise, 33 Bd. du Port, 95011, Cergy Cedex, France.)
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Advertising messages compete for scarce attention. “Junk” mail, “spam” e-mail, and telemarketing calls need both parties to exert effort to generate transactions. Message recipients supply attention depending on average message benefit, while senders are motivated by profits. Costlier message transmission may improve message quality so more messages are examined. Too many messages may be sent, or the wrong ones. A Do-Not-Call policy beats a ban, but too many individuals opt out. A monopoly gatekeeper performs better than personal access pricing if nuisance costs to receivers are moderate.
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Paper provided by THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise in its series THEMA Working Papers with number
2007-10.
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