Consumption Externalities, Coordination, and Advertising*
论证广告在存在消费外部性的市场中，除了说服和信息功能外，还能协调消费者对他人购买决策的预期，并分析这种协调作用对企业定价和广告策略的影响。
The aim of this article is to demonstrate that advertising can have an important function in markets with consumption externalities apart from its persuasive and informative roles. We show that advertising may function as a device to coordinate consumer expectations of the purchasing decisions of other consumers in markets with consumption externalities. The implications of advertising as a coordinating device are examined in the pricing and advertising decisions of firms interacting strategically. Although, at times, the one‐period advertising expense can exceed the one‐period monopoly profit, in equilibrium, consumers will pay a premium for the more heavily advertised brand.