Advertising Costs and Product Prices
研究了广告成本变化如何影响产品价格，通过构建在线商家模型发现，广告成本上升时商家会减少广告支出，但不一定调整产品价格。
How does a change in the cost of advertising affect product prices? On the one hand, advertising increases costs, but on the other hand, advertising is expected to generate more sales, so the impact on product prices and profits depends on the magnitude of these two effects. In this article I describe some recent trends in online and offline advertising and build a simple model of an online merchant. In this model when advertising becomes more costly, the merchant cuts back on ad spending, but it does not necessarily change product prices.