Observers argue that evidence for the persuasive role of advertising comes from competitive categories where increases in advertising lead to higher average prices. Conversely, others claim that advertising serves a purely informational role. Here, higher levels of advertising lead to...

Traditionally, research on political campaigns has focused on the positioning of parties and not on how parties communicate with the electorate. We construct a model where two parties fund both the "creative" and "media" elements of political advertising and examine how campaign budgets affect...