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. …

Comparative advertising content differs from generic. We discover that dissipative advertising has consequences … depending upon content and cost. Comparison advertising may trigger legal action by rival firms that are named. In the model an … comparison can enhance the signaling potential of dissipative advertising. From the viewpoint of the entrant, the choice of …

incentive to spend too little on prescription drugs. We investigate whether pharmaceutical manufacturers can use advertising to … mitigate this agency conflict. We find that advertising may induce health care providers to offer socially efficient … medications, though drug companies may not choose the socially efficient level of advertising. It will also pay for drug companies …