| Publication type: | Working paper – expertise – study |
| Title: | Targeted information and limited attention |
| Authors: | Hefti, Andreas Liu, Shuo |
| DOI: | 10.5167/uzh-124916 |
| Extent: | 42 |
| Issue Date: | 2016 |
| Series: | Working paper series / Department of Economics |
| Series volume: | 230 |
| Publisher / Ed. Institution: | Universität Zürich |
| Publisher / Ed. Institution: | Zürich |
| ISSN: | 1664-7041 664-705X |
| Language: | English |
| Subjects: | Advertising; Bounded rationality; Ad avoidance; Differentiation; Information tax; Limited attention; Oligopolistic competition; Privacy concerns; Salience competition; Targeted advertising; Targeting |
| Subject (DDC): | 659: Advertising and public relations |
| Abstract: | We examine the implications of limited consumer attention for the decisions of competing firms which consumers to target with their messages. Limited attention changes the conventional strategic role of targeted information, as information-senders may profitably intrude a competitor’s segment of prime consumers. Therefore, the presence of inattentive consumers can incentivize firms to behave as mass-advertisers, even if firms had the ability to direct their messages at infinite precision towards consumers with the most aligned preferences. Anticipating that the equilibrium information provision will not reflect their preferences, consumers with high nuisance costs optimally decide to block information. This adverse effect of information dissemination can explain the recently observed increased use of ad blocking tools by consumers, which has become a key issue to the entire advertising industry. Within the targeting framework, we further analyze the consequences of limited attention for the determinants of market shares, information taxation, attention competition between firms, the value of marketing data to firms, consumer privacy concerns and firm pricing strategies. |
| URI: | https://digitalcollection.zhaw.ch/handle/11475/16340 |
| License (according to publishing contract): | Licence according to publishing contract |
| Departement: | School of Management and Law |
| Organisational Unit: | Center for Labor, Digital and Regional Economics (CLDR) |
| Appears in collections: | Publikationen School of Management and Law |
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Hefti, A., & Liu, S. (2016). Targeted information and limited attention. Universität Zürich. https://doi.org/10.5167/uzh-124916
Hefti, A. and Liu, S. (2016) Targeted information and limited attention. Zürich: Universität Zürich. Available at: https://doi.org/10.5167/uzh-124916.
A. Hefti and S. Liu, “Targeted information and limited attention,” Universität Zürich, Zürich, 2016. doi: 10.5167/uzh-124916.
HEFTI, Andreas und Shuo LIU, 2016. Targeted information and limited attention. Zürich: Universität Zürich
Hefti, Andreas, and Shuo Liu. 2016. “Targeted Information and Limited Attention.” Zürich: Universität Zürich. https://doi.org/10.5167/uzh-124916.
Hefti, Andreas, and Shuo Liu. Targeted Information and Limited Attention. Universität Zürich, 2016, https://doi.org/10.5167/uzh-124916.
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