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Advertising, Price and Quality in Self-regulating Professions: A Survey

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  • James Love
  • Frank Stephen

Abstract

This paper surveys the theoretical and empirical literature on the relationship between advertising, fees and quality in the self-regulating professions. Much of the literature is derived from the perspective of advertising as an information-enhancing device, helping to reduce the information asymmetry between professional and client. This is consistent with the majority of the empirical studies which suggest that advertising tends to have a downward effect on professional fees, with little if any adverse effect on quality. There are, however, important issues of method and measurement which may lessen the force of this conclusion

Suggested Citation

  • James Love & Frank Stephen, 1996. "Advertising, Price and Quality in Self-regulating Professions: A Survey," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 3(2), pages 227-248.
    • Handle: RePEc:taf:ijecbs:v:3:y:1996:i:2:p:227-248
    DOI: 10.1080/758528455
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    References listed on IDEAS

    as
    1. Phlips,Louis, 1983. "The Economics of Price Discrimination," Cambridge Books, Cambridge University Press, number 9780521283946.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Shinnick, Edward, 2003. "Aspects of Regulatory Reform in the Irish Solicitor Profession: Review & Evaluation," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI), vol. 2003(2-Summer), pages 1-15.
    2. Frank H. Stephen, 2013. "Lawyers, Markets and Regulation," Books, Edward Elgar Publishing, number 14803.
    3. Shinnick, Edward & Stephen, Frank H., 2000. "Professional cartels and scale fees: chiselling on the celtic fringe?," International Review of Law and Economics, Elsevier, vol. 20(4), pages 407-423, December.
    4. Camille Chaserant & Sophie Harnay, 2013. "The regulation of quality in the market for legal services: Taking the heterogeneity of legal services seriously," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 10(2), pages 267-291, August.

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    More about this item

    Keywords

    Advertising; Self-regulating professions; Price-quality interaction; JEL classifications: L15; L43; L84;
    All these keywords.

    JEL classification:

    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services

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