- (pp. 93-113)
AbstractEmpirical evidence suggests that most advertisements contain little direct information. Many do not mention prices. We analyze a monopoly firm's choice of advertising content and the information disclosed to consumers. The firm advertises only product information, price information, or both, and prefers to convey only limited product information if possible. It is socially harmful to force it to provide full information if it has sufficient ability to parse the information imparted, nor does it help to restrict the information voluntarily provided.
CitationAnderson, Simon, P., and Régis Renault. 2006. "Advertising Content." American Economic Review, 96 (1): 93-113. DOI: 10.1257/000282806776157632
- L12 Monopoly; Monopolization Strategies
- L15 Information and Product Quality; Standardization and Compatibility
- M37 Advertising