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Shouting To Be Heard In Advertising

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Executive Summary

Advertising competes for consumer attention, but attention is scarce. More profitable senders send more messages to break through the clutter. There may be multiple equilibria: more messages in aggregate induce more "Shouting to be heard" among senders trying to break through the advertising clutter, which creates a "Lottery ticket" dimension for profit dissipation. Equilibria can involve a small range of loud shouters or large range of quiet senders. All senders prefer there to be less "Shouting." Increasing the cost of sending messages can make all senders better off. A new technique is given for describing multiple equilibria, by determining how much examination is consistent with given marginal sender.

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