Non-comparative versus Comparative Advertising of Quality

Emons, Winand; Fluet, Claude (2012). Non-comparative versus Comparative Advertising of Quality. International Journal of Industrial Organization, 30(4), pp. 352-360. Elsevier 10.1016/j.ijindorg.2012.01.004

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NOTICE: this is the author’s version of a work that was accepted for publication in International Journal of Industrial Organization. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in International Journal of Industrial Organization (30/4, July 2012) DOI 10.1016/j.ijindorg.2012.01.004

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Two firms produce a good with a horizontal and a vertical character- istic called quality. The difference in the unobservable quality levels determines how the firms share the market. We consider two scenar- ios: In the first one, firms disclose quality; in the second one, they send costly signals thereof. Under non-comparative advertising a firm advertises its own quality, under comparative advertising a firm adver- tises the quality differential. In either scenario, under comparative ad- vertising the firms never advertise together which they may do under non-comparative advertising. Moreover, under comparative advertis- ing firms do not advertise when the informational value to consumers is small.

Item Type:

Journal Article (Original Article)

Division/Institute:

03 Faculty of Business, Economics and Social Sciences > Department of Economics

UniBE Contributor:

Emons, Winand

Subjects:

300 Social sciences, sociology & anthropology > 330 Economics

ISSN:

0167-7187

Publisher:

Elsevier

Language:

English

Submitter:

Winand Emons

Date Deposited:

03 Apr 2014 11:58

Last Modified:

05 Dec 2014 18:46

Publisher DOI:

10.1016/j.ijindorg.2012.01.004

Related URLs:

BORIS DOI:

10.7892/boris.49793

URI:

https://boris.unibe.ch/id/eprint/49793

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