Persuasive and Informative Advertising: A Classroom Experiment
نویسندگان
چکیده
منابع مشابه
Risk Aversion and Apparently Persuasive Advertising∗
One of the most well-established empirical facts is that exposure to advertisements increases a consumers’ tendency to buy the promoted product. The standard interpretation of this empirical regularity is that advertising intensity is an element of the utility. Here we show that if consumers are risk-averse and advertising conveys information about product attributes, the empirical regularity c...
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In order to get a grasp of the market for advertising, one needs to understand why firms demand advertising, and how suppliers of advertising set their prices. In the present analysis, firms buy advertising in order to inform consumers about their products. TV channels offer advertising on a per-viewer basis. We find that the performance of this market for advertising depends on features of bot...
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We consider a model of strategic information transmission in which a firm can communicate its quality to consumers through informative advertising. Our main result is that informative advertising claims can be credible even when the firm faces consumers with ex ante homogeneous preferences. A fundamental assumption of our model is that whether the product is available for purchase is independen...
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This paper introduces a model to analyze the role of the cost of information dissemination in large markets where firms have varying degrees of intrinsic efficiency reflected in their marginal costs. Firms enter a market and discover how efficient they are. Those firms with high enough efficiency stay, others exit. Remaining firms then compete to attract consumers by disseminating information a...
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ژورنال
عنوان ژورنال: The Journal of Economic Education
سال: 2011
ISSN: 0022-0485,2152-4068
DOI: 10.1080/00220485.2011.536489