We develop an empirical study of the information–persuasion trade-off in advertising using data on the information content of ads, which we measure with the number of information cues in ads within an entire industry. The data are from video files of all advertisements in the OTC analgesics...

We present a simple model where mergers benefit consumers, harm outsiders and, depending on the shape of demand, can be profitable for insiders (and where mergers do not involve cost synergies).