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

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 …

There is widespread evidence that some firms use false advertising to overstate the value of their products. We … advertising actively influences rational buyers, and analyze the effects of policy under different welfare objectives. We … establish precise conditions where policy optimally permits a positive level of false advertising, and show how these conditions …

This paper argues, in the context of targeted advertising, that receivers' rational inattention and ability to … has an opportunity to launch an advertising campaign and chooses a targeting strategy -- which consumers to send its …

a difficult task to craft qualifications in advertising that communicate a low level of scientific certainty. None of …

This chapter proposes an analysis of the role of advertising in the transmission of information in markets. It also … describes how the economic analysis of informative advertising provides a satisfactory account of advertising practices and … discusses the extent to which resorting to alternative approaches to advertising might be fruitful. In doing so, it provides an …

I present a model in which advertising changes consumers' recollections of their past experiences with a product. The … model sheds light on several important features of advertising behavior: the relationship between advertising levels and … consumer experience, the relationship between advertising and product quality, and the presence of increasing returns in the …

advertising. The experimental design overcomes limitations that have hindered previous investigations of this issue. Our study … uncovers dynamic advertising effects that have not been previously considered in the literature. We find that current … advertising does affect future sales but surprisingly, the affect is not always positive; for the firm's best customers the long …