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Evaluation and associations: A neural-network model of advertising and consumer choice

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  • Bhatt, Meghana A.

Abstract

We propose a neurally motivated network model of advertising where advertisements create complementarities among the directly observable attributes of a product, allowing a brand to obtain social value. The formalization of this process allows us to examine the indirect effects of advertising in addition to how ads might affect the decision utility of a product. We focus mainly on the externalities, both positive (spillovers) and negative (dilution), predicted by this model.

Suggested Citation

  • Bhatt, Meghana A., 2012. "Evaluation and associations: A neural-network model of advertising and consumer choice," Journal of Economic Behavior & Organization, Elsevier, vol. 82(1), pages 236-255.
    • Handle: RePEc:eee:jeborg:v:82:y:2012:i:1:p:236-255
    DOI: 10.1016/j.jebo.2012.02.001
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    References listed on IDEAS

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    Cited by:

    1. Driver, Ciaran, 2015. "Advertising’s Elusive Economic Rationale: is there a case for limiting tax relief?," MPRA Paper 68790, University Library of Munich, Germany.

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    More about this item

    Keywords

    Advertising and marketing; Neuroeconomics;

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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