advertising in the us personal computer industry michelle sovinsky goeree 1 march 2004 first version june 2002 abstract traditional models of consumer choice assume consumers are aware all products for sale this assumption is questionable especially when applied to markets characterized by a high degree change such as pc i present an empirical discrete model limited information on part where influences set from which choose purchase multi product firms prices and each medium maximize their profits apply market expenditures over 2 billion annually estimation technique incorporates macro micro data three sources esti mated median markups 19 production costs explained fact that know only some indeed estimates predict one fourth magnitude find specific demand curves biased towards being too elastic under suggest use media
