The belief that individual difference in brand preference or choice behavior are caused by personality differences has not always been supported by empirical research. The experiment on the variety seeking behavior of consumers, discussed in this paper argues that although consumers are seeking...

Disclaimers are widely used by firms to warn customers of dangers and limitations of their products, and are persuasive when the issue is important. We examine the effects of mandatory disclaimers. Speech restrictions conflict with basic economic incentives. Sellers are motivated by profit to...

This paper presents a general equilibrium model where rms producing the consumption good in an oligopolistic market purchase advertising in order to increase their market shares. The model aims to evaluate the general equilibrium consequences of such a behaviour. It analyses the eects of a...

This paper provides new empirical evidence for quarterly U.S. aggregate advertisingexpenditures, showing that advertising has a well defined pattern over the BusinessCycle. To understand this pattern we develop a general equilibrium model wheretargeted advertising increases the marginal utility...

We study a market model in which competing firms use costly marketing devices to influence the set of alternatives which consumers perceive as relevant. Consumers in our model are boundedly rational in the sense that they have an imperfect perception of what is relevant to their decision...

This paper applies the theory of memory for advertising, developed in the consumer behavior literature, to an industrial organization setting to provide insight into advertising strategies in imperfectly competitive markets. There are two firms and infinitely many identical consumers. The firms...

This paper provides a formal analysis of persuasive advertising when firms compete for consumers with heterogenous social attitudes towards the consumption by others. Deriving product demand from primitives, we show that the demand-enhancing effect of persuasive advertising varies across...

This paper analyzes persuasive advertising and pricing in oligopoly if firms sell differentiated products and consumers have heterogenous social attitudes towards the consumption by others. Deriving product demand from primitives, we show that the demand-enhancing effect of persuasive...

Canada’s universal health insurance system leads to the under-provision of disease prevention by consumers. This paper demonstrates that a public health education campaign designed to increase coverage of preventive treatment can easily have the opposite effect. Using a model of targeted...