Abstract
We model the incentives of individuals to engage in word of mouth (or buzz) about a product, and how a firm may strategically influence this process through its information release and advertising strategies. Individuals receive utility by improving how others perceive them. A firm restricts access to information, advertising may crowd out word of mouth, and a credible commitment not to engage in advertising is valuable for a firm.
Original language | English |
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Pages (from-to) | 203-229 |
Number of pages | 27 |
Journal | RAND Journal of Economics |
Volume | 48 |
Issue number | 1 |
DOIs | |
Publication status | Published - 1 Mar 2017 |