nep-mkt New Economics Papers
on Marketing
Issue of 2008‒11‒11
five papers chosen by
Joao Carlos Correia Leitao
Technical University of Lisbon

  1. Slippery Slope? Assessing the Economic Impact of the 2002 Winter Olympic Games in Salt Lake City, Utah By Robert Baade; Robert Baumann; Victor Matheson
  2. A Retail Benchmarking Approach to Efficient Two-Way Access Pricing: Termination-Based Price Discrimination with Elastic Subscription Demand By Sjaak Hurkens; Doh-Shin Jeon
  3. Le commerce en ligne des œuvres d'art By Victor Lebreton; Xavier Greffe
  4. Blogs and the Economics of Reciprocal Attention By Gaudeul, Alexia; Mathieu, Laurence; Peroni, Chiara
  5. Can in-store displays improve category sales and brand market share in online stores? A study on the overall effectiveness and differences between display types in an online FMCG context By Breugelmans Els; Campo Katia

  1. By: Robert Baade (Department of Economics and Business, Lake Forest College); Robert Baumann (Department of Economics, College of the Holy Cross); Victor Matheson (Department of Economics, College of the Holy Cross)
    Abstract: This paper provides an empirical examination of the 2002 Winter Olympic Games in Salt Lake City, Utah. Our analysis of taxable sales in the counties in which Olympic events took place finds that some sectors such as hotels and restaurants prospered while other retailers such as general merchandisers and department stores suffered. Overall the gains in the hospitality industry are lower than the losses experienced by other sectors in the economy. Given the experience of Utah, potential Olympic hosts should exercise caution before proceeding down the slippery slope of bidding for this event.
    Keywords: Olympics, impact analysis, mega-event, tourism, sports
    JEL: O18 R53 L83
    Date: 2008–11
  2. By: Sjaak Hurkens (Institute for Economic Analysis (CSIC)); Doh-Shin Jeon (Department of Economics and Business, Universitat Pompeu Fabra)
    Abstract: We study how access pricing affects network competition when consumers' subscription demand is elastic and networks compete with non-linear prices and can use termination-based price discrimination. In the case of a fixed per minute termination charge, our model generalizes the results of Gans and King (2001), Dessein (2003) and Calzada and Valletti (2008). We show that a reduction of the termination charge below cost has two opposing effects: it softens competition and it helps to internalize network externalities. The former reduces consumer surplus while the latter increases it. Firms always prefer termination charge below cost, either to soften competition or to internalize the network effect. The regulator will favor termination below cost only when this boosts market penetration. Next, we consider the retail benchmarking approach (Jeon and Hurkens, 2008) that determines termination charges as a function of retail prices and show that this approach allows the regulator to increase subscription without distorting call volumes. Furthermore, we show that an informed regulator can even implement the first-best outcome by using this approach.
    Keywords: Networks, Access Pricing, Interconnection, Regulation, Telecommunications
    JEL: D4 K23 L51 L96
    Date: 2008–11
  3. By: Victor Lebreton (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I); Xavier Greffe (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I)
    Abstract: La vente en ligne d'œuvres d'art devient un moyen important d'échange et de commercialisation des œuvres. Nous étudions cette nouvelle façon de mettre en contact acheteur e t vendeur à travers de sites spécialisés. Ce chapitre d'ouvrage comprend des tableaux comparatifs des portails et maison de vente en ligne d'œuvre d'art et d'antiquités.
    Keywords: Vente a distance;VAD;marché de l'art;internet;commerce de l'art;portail web;maison de vente;vente en ligne;marche de l'art;antiquités
    Date: 2008–09
  4. By: Gaudeul, Alexia; Mathieu, Laurence; Peroni, Chiara
    Abstract: Blogs differ from other media in that authors are usually not remunerated and inscribe themselves in communities of similarly minded individuals. Bloggers value reciprocal attention, interaction with other bloggers and information from reading other blogs; they value being read but also writing itself, irrespective of an audience. A novel dataset from a major blogging community, LiveJournal, is used to verify predictions from a model of social networking. Content production and blogging activity are found to be related to the size and degree of asymmetry of the relational networks in which bloggers are inscribed.
    Keywords: Blog; Internet; Media; Community; Social Network; Reciprocity; Livejournal; Web 2.0
    JEL: L82 Z13 D85
    Date: 2008–10–28
  5. By: Breugelmans Els; Campo Katia (METEOR)
    Abstract: Our study investigates the overall effects of in-store displays (ISD) on category sales and brand market share in an online shopping context, and compares the differences in effectiveness between ISD types. Using data from an online grocer, we examine three online ISD types that match with traditional ones: first screen (entrance), banner (end-of-aisle) and shelf tag (in-aisle) displays. Empirical results for 10 categories confirm that online ISD may substantially increase brand market share and to a lesser extent, category sales. Our results also demonstrate that not all types are equally effective. First screen displays clearly have the strongest effect on market share: they benefit from their placement on the ‘entrance’ location, central on-screen position and direct purchase link. While they only feature 1 SKU, banner displays typically feature all SKUs of a brand, yet, are placed on border-screen positions on traveling-zone pages without a direct purchase link. Based on our results, the advantage of banner displays does not weigh up against the advantages of first screen displays in most cases. Shelf tags, finally, may be very useful in attracting attention to interesting promotions, but appear to have no or at most a limited effect on their own.
    Keywords: marketing ;
    Date: 2008

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