In their seminal paper Grossman and Shapiro (1984) find that informative advertising is socially excessive in an … one ad, i.e., advertising does not have a demand creation effect. Christou and Vettas (2008), Tirole (1988), among others …, have presented counter-examples in alternative settings, showing when the assumption does not hold, advertising may …

false advertising by a firm in duopolistic competition where consumers can be distinguished according to whether or not they … form rational beliefs about the trustworthiness of advertising claims. We compare private and public law enforcement in the … form of the demand for injunctions against false advertising. From a welfare perspective, we show that it can be optimal …

false advertising by a firm in duopolistic competition where consumers can be distinguished according to whether or not they … form rational beliefs about the trustworthiness of advertising claims. We compare private and public law enforcement in the … form of the demand for injunctions against false advertising. From a welfare perspective, we show that it can be optimal …

This paper studies advertising in vertically differentiated product markets with positive consumption externalities. In … consumers. In such markets, we show that firms will engage in advertising competition in order to convince consumers of their … levels of advertising. …

characteristics and more concerned about hidden quality characteristics. Online retailers rely more on advertising than traditional …. Advertising and revenue data for the online book market reveal that consumers respond to advertising rather than low prices. As … the market increases, advertising costs escalate and there is no new entry. Advertising to sales ratios and market …