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Persuasive and Informative Advertising: A Classroom Experiment

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  • Beth A. Freeborn
  • Jason P. Hulbert

Abstract

The authors outline a pair of classroom activities designed to provide an intuitive foundation to the theoretical introduction of advertising in monopoly markets. The roles of both informative and persuasive advertising are covered. Each student acts as a monopolist and chooses the number of (costly) advertisements and the price. The experiments are intended for intermediate microeconomics or industrial organization courses, but might be used in any course that covers advertising models.

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File URL: http://hdl.handle.net/10.1080/00220485.2011.536489
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal The Journal of Economic Education.

Volume (Year): 42 (2011)
Issue (Month): 1 (January)
Pages: 51-59

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Handle: RePEc:taf:jeduce:v:42:y:2011:i:1:p:51-59

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  1. Frank, Bjorn, 1997. "The Impact of Classroom Experiments on the Learning of Economics: An Empirical Investigation," Economic Inquiry, Western Economic Association International, vol. 35(4), pages 763-69, October.
  2. Mark Dickie, 2006. "Do Classroom Experiments Increase Learning in Introductory Microeconomics?," The Journal of Economic Education, Taylor & Francis Journals, vol. 37(3), pages 267-288, July.
  3. Luís M. B. Cabral, 2000. "Introduction to Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262032864, January.
  4. Capra, C. Monica & Goeree, Jacob K. & Gomez, Rosario & Holt, Charles A., 2000. "Predation, asymmetric information and strategic behavior in the classroom: an experimental approach to the teaching of industrial organization," International Journal of Industrial Organization, Elsevier, vol. 18(1), pages 205-225, January.
  5. Ackerberg, Daniel A, 2001. "Empirically Distinguishing Informative and Prestige Effects of Advertising," RAND Journal of Economics, The RAND Corporation, vol. 32(2), pages 316-33, Summer.
  6. Gremmen, H.J.F.M. & Potters, J.J.M., 1996. "Assessing the Efficacy of Gaming in Economics Education," Discussion Paper 1996-05, Tilburg University, Center for Economic Research.
  7. Tisha L. N. Emerson & Beck A. Taylor, 2004. "Comparing Student Achievement across Experimental and Lecture-Oriented Sections of a Principles of Microeconomics Course," Southern Economic Journal, Southern Economic Association, vol. 70(3), pages 672-693, January.
  8. Rosenblat, Tanya, 2009. "Vertical Integration of Successive Monopolists: A Classroom Experiment," Staff General Research Papers 13027, Iowa State University, Department of Economics.
  9. Atin Basuchoudhary & Christopher Metcalf & Kai Pommerenke & David Reiley & Christian Rojas & Marzena Rostek & James Stodder, 2008. "Price Discrimination and Resale: A Classroom Experiment," The Journal of Economic Education, Taylor & Francis Journals, vol. 39(3), pages 229-244, July.
  10. Avinash Dixit & Victor Norman, 1978. "Advertising and Welfare," Bell Journal of Economics, The RAND Corporation, vol. 9(1), pages 1-17, Spring.
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