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We examine the incentives for firms to voluntarily disclose otherwise private information about the quality attributes of their products. In particular, we focus on the case of differentiated products with multiple attributes and heterogeneous consumers. We show that there exist certain...
Persistent link: https://www.econbiz.de/10012466734
informational shrouding flourishes even in highly competitive markets, even in markets with costless advertising, and even when the …
Persistent link: https://www.econbiz.de/10012466916
Persistent link: https://www.econbiz.de/10013336569
We analyze a model in which firms are able to acquire information about product risks and may or may not be required to disclose this information. We initially study the effect of disclosure rules assuming that firms are not liable for the harm caused by their products. Although mandatory...
Persistent link: https://www.econbiz.de/10012465886
Consumer search is not only costly but also tiring. We characterize the intertemporal effects that search fatigue has on oligopoly prices, product proliferation, and the provision of consumer assistance (i.e., advice). These effects vary based on whether search is all-or-nothing or sequential in...
Persistent link: https://www.econbiz.de/10012460765
This paper studies the market provision of a specific type of public good: radio and television broadcasts. Its main focus is to explore the ability of the market to provide broadcasting efficiently in a world in which broadcasters earn revenues by selling time to advertisers and advertisements...
Persistent link: https://www.econbiz.de/10012471263
literature has been prominent in legislative debates about taxation as a tool to discourage smoking, and has contributed theory … other tobacco control policies, such as advertising restrictions, prominent in tobacco control debates. Research addressing …
Persistent link: https://www.econbiz.de/10012471754
advertising agency industry? This question is addressed by treating an advertising agency as a multiproduct firm. The firm … advertising messages which it creates on behalf of its clients. Evidence is presented indicating that the structure of demand and … costs in the advertising agency industry conforms to the conditions that MacDonald and Slivinski (1987) showed were required …
Persistent link: https://www.econbiz.de/10012474089
We provide a selective survey of empirical evidence on the effects as well as the drivers of persuasive communication. We consider persuasion directed at consumers, voters, donors, and investors. We organize our review around four questions. First, to what extent does persuasion affect the...
Persistent link: https://www.econbiz.de/10012463352
The extent of pharmaceutical advertising and promotion can be characterized by a balancing act between profitable … scenarios and test the model's predictions using a novel combination of sales, promotion, advertising, and adverse event reports … health events, and have extensive advertising and promotion. We find that advertising and promotion expenditures increase own …
Persistent link: https://www.econbiz.de/10012461495