This paper studies advertising in vertically differentiated product markets with positive consumption externalities. In … consumers. In such markets, we show that firms will engage in advertising competition in order to convince consumers of their … levels of advertising. …

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 …

We extend the theory of advertising as a quality signal, using a model where an entrant can choose to advertise by … comparing its product to that of an established incumbent. Comparative advertising, comparing quality of one’s own product to … misleading. We show that comparative advertising can be a signal in instances where generic advertising is not viable. …

affected by advertising. This paper analyzes media market competition in a duopoly framework. There exist symmetric and … advertising positively. If their valuation is negative only symmetric equilibria exist. Regulations limiting price competition …

The aim of this Paper is to demonstrate that advertising can have an important function in markets with consumption … externalities, apart from its persuasive and informative roles. We show that advertising may function as a device to coordinate … implications of advertising as a coordinating device are examined in the pricing and advertising decisions of firms interacting …

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 …

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