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On the Efficiency of Spam Mailing and Portal Advertising

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Abstract

The objective of this paper is to provide a simple approach endogenizing the welfare reducing or welfare enhancing effect of informative advertising. Using this approach, it is possible to analyse the welfare consequences of a technology shock that reduces unit information costs, and to explain whether electronic junk mails or portal advertising will cause welfare gains or losses in a competitive environment.

Suggested Citation

  • Martin Bandulet, 2005. "On the Efficiency of Spam Mailing and Portal Advertising," Discussion Paper Series 275, Universitaet Augsburg, Institute for Economics.
    • Handle: RePEc:aug:augsbe:0275
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    File URL: https://opus.bibliothek.uni-augsburg.de/opus4/files/71169/275.pdf
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    References listed on IDEAS

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    1. Reisinger, Markus, 2004. "Two-Sided Markets with Negative Externalities," Discussion Papers in Economics 478, University of Munich, Department of Economics.
    2. Simon P. Anderson & Stephen Coate, 2005. "Market Provision of Broadcasting: A Welfare Analysis," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(4), pages 947-972.
    3. Joseph E. Stiglitz & G. Frank Mathewson (ed.), 1986. "New Developments in the Analysis of Market Structure," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262690934, April.
    4. Nicholas Kaldor, 1950. "The Economic Aspects of Advertising," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 18(1), pages 1-27.
    5. Barros Pedro P & Kind Hans Jarle & Nilssen Tore & Sørgard Lars, 2005. "Media Competition on the Internet," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 4(1), pages 1-20, January.
    6. Gerard R. Butters, 1977. "Equilibrium Distributions of Sales and Advertising Prices," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 44(3), pages 465-491.
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    More about this item

    Keywords

    advertising; externalities; internet portals;
    All these keywords.

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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