Template-Type: ReDIF-Paper 1.0
Title: Ad Clutter, Time Use and Media Diversity
Author-Name: Simon P. Anderson
Author-Email: sa9w@virginia.edu
Author-Name: Martin Peitz
Author-Email: Martin.Peitz@gmail.com

Classification-JEL: D43, L13
Keywords: media economics, advertising clutter, limited attention, information congestion, two-sided markets

Abstract: We introduce advertising congestion along with a time-use model of consumer choice
among media. Both consumers and advertisers multi-home. Higher equilibrium advertising
levels ensue on less popular media platforms because platforms treat consumer
attention as a common property resource: smaller platforms internalize less the congestion
from advertising and so advertise more. Platform entry raises the ad nuisance price
to consumers and diminishes the quality of the consumption experience on all platforms.
With symmetric platforms, entry still leads to higher consumer benets. However, entry
of less attractive platforms can increase ad nuisance levels so much that consumeres are
worse off.

Note: 
Length: 47
Creation-Date: 2020-07
Revision-Date: 
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp140
Handle: RePEc:bon:boncrc:CRCTR224_2019_140v2