Emons, Winand; Fluet, Claude (December 2008). Non-comparative versus Comparative Advertising as a Quality Signal (Discussion Papers 08-05). Bern: Department of Economics
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Two firms produce a product with a horizontal and a vertical characteristic. We call the vertical characteristic quality. The difference in the quality levels determines how the firms share the market. Firms know the quality levels, consumers do not. Under non-comparative
advertising a firm may signal its own quality. Under comparative advertising firms may signal the quality differential. In both scenarios the firms may attempt to mislead at a cost. If firms advertise, in both scenarios equilibria are revealing. Under comparative advertising the firms never advertise together which they may do under non-comparative advertising.
Item Type: |
Working Paper |
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Division/Institute: |
03 Faculty of Business, Economics and Social Sciences > Department of Economics |
UniBE Contributor: |
Emons, Winand, Fluet, Claude |
Subjects: |
300 Social sciences, sociology & anthropology > 330 Economics |
Series: |
Discussion Papers |
Publisher: |
Department of Economics |
Language: |
English |
Submitter: |
Lars Tschannen |
Date Deposited: |
07 Oct 2020 15:17 |
Last Modified: |
05 Dec 2022 15:39 |
JEL Classification: |
D82, K41, K42 |
BORIS DOI: |
10.7892/boris.145714 |
URI: |
https://boris.unibe.ch/id/eprint/145714 |
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