Firms' Reactions to Public Information on Business Practices: Case of Search Advertising

  title={Firms' Reactions to Public Information on Business Practices: Case of Search Advertising},
  author={Justin M. Rao and A. Simonov},
  journal={IO: Empirical Studies of Firms & Markets eJournal},
We use five years of bidding data to examine the reaction of advertisers to widely disseminated press on the lack of effectiveness of brand search advertising (queries that contain the firm's name) found in a large experiment run by eBay (Blake, Nosko and Tadelis, 2015). We estimate that 11% of firms that did not face competing ads on their brand keywords, matching the case of eBay, discontinued the practice of brand search advertising. In contrast, firms did not react to the information… Expand
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