This paper analyzes the optimal advertising and price policies of a monopolist who sells a new experience good over … time to a population of heterogeneous forward-looking buyers. We consider informative advertising that can complement or … substitute for learning-by-purchasing, and show that the advertising intensity always peaks during the early stages when the …

advertising for orange juice indicated that the free rider problem has notably limited the impact of advertising on price in the U ….S. market. High U.S. orange juice demand, which in part has been a result of advertising, has attracted substantial amounts of … orange juice imports. Imports have eroded the impact of advertising on price by an estimated two-thirds. …

. Results suggest confusion may exist, with grapefruit-juice advertising not only increasing the demand for grapefruit juice but …