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There is widespread evidence that some firms use false advertising to overstate the value of their products. Using a model in which a policymaker is able to punish such false claims, we characterize a natural equilibrium in which false advertising actively influences rational buyers. We analyze...
Persistent link: https://www.econbiz.de/10011448725
There is widespread evidence that some firms use false advertising to overstate the value of their products. We consider a model in which a policymaker is able to punish such false claims. We characterize an equilibrium where false advertising actively influences rational buyers, and analyze the...
Persistent link: https://www.econbiz.de/10011660613
intermediary deliberately informs about some products and their price quotes from outside a consumer's preferred product category. …
Persistent link: https://www.econbiz.de/10011492145
segments and also can compete for shoppers who purchase at the lowest advertised price. Two advertising structures consistent … chosen proportion of the entire market and present all consumers with a uniform price. The analysis is then extended to allow … firms to target ads to specific market segments, both with and without the ability to price discriminate. Our model nests …
Persistent link: https://www.econbiz.de/10012827578
I study the welfare and price implications of consumer privacy. A consumer discloses information to a multi … from accurate recommendations, the seller may use the information to price discriminate. I show that the seller prefers to …
Persistent link: https://www.econbiz.de/10012900118
We consider a duopoly in a homogenous goods market where part of the consumers are ex ante uninformed about prices. Information can come through two different channels: advertising and sequential consumer search. We arrive at the following results. First, there is no monotone relationship...
Persistent link: https://www.econbiz.de/10011343292
whether or not to carry the product. Firms may advertise, informing consumers not only of the price they charge, but also of …
Persistent link: https://www.econbiz.de/10011349181
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