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 …

contents upon which advertisers are likely to share similar preferences; ii) In advertising industries characterized by high …

buyer into a bad purchase through (costly) deceptive advertising. We characterize the equilibrium set of the game and argue …

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 …

engage in deceptive advertising, potentially fooling a buyer into thinking the product is better than it is. Although … deceptive advertising might seem to harm the buyer, we show that he could be better off when the low-quality seller can engage … in deceptive advertising than not. We characterize the optimal deterrence rule that a regulatory agency seeking to punish …

This paper shows how a firm can use non-targeted advertising to exploit consumers' desire for social status. A … monopolist sells multiple varieties of a good to consumers who each care about what others believe about his wealth. Advertising …