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The Economic Analysis of Advertising

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Author Info
Kyle Bagwell () (Columbia University - Department of Economics)

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Abstract

By its very nature, advertising is a prominent feature of economic life. Advertising reaches consumers through their TV sets, radios, newspapers, magazines, mailboxes, computers and more. Not surprisingly, the associated advertising expenditures can be huge. For example, Advertising Age (2005) reports that, in 2003 in the U.S., General Motors spent $3.43 billion to advertise its cars and trucks; Procter and Gamble devoted $3.32 billion to the advertisement of its detergents and cosmetics; and Pfizer incurred a $2.84 billion dollar advertising expense for its drugs. Advertising is big business indeed.

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File URL: http://www.econ.columbia.edu/RePEc/pdf/DP0506-01.pdf
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Publisher Info
Paper provided by Columbia University, Department of Economics in its series Discussion Papers with number 0506-01.

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Length: 182 pages
Date of creation: 2005
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Handle: RePEc:clu:wpaper:0506-01

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  1. Xavier Gabaix & David Laibson, 2005. "Shrouded Attributes, Consumer Myopia, and Information Suppression in Competitive Markets," NBER Working Papers 11755, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Kyle Bagwell, 2006. "Signaling and entry deterrence: A multi-dimensional analysis," Discussion Papers 0506-16, Columbia University, Department of Economics. [Downloadable!]
  3. Montefiori, Marcello & Resta, Marina, 2008. "Social influence and neighbourhood effects in the health care market," P.O.L.I.S. department's Working Papers 98, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
  4. Simon P. Anderson & Regis Renault, 2006. "Advertising Content," American Economic Review, American Economic Association, vol. 96(1), pages 93-113, March. [Downloadable!] (restricted)
    Other versions:
  5. Simbanegavi, Witness, 2008. "Loss leader or low margin leader? Advertising and the degree of product differentiation," MPRA Paper 9694, University Library of Munich, Germany. [Downloadable!]
  6. MAHENC Philippe, 2008. "Introducing Greens Goods," Working Papers 08.03.247, LERNA, University of Toulouse. [Downloadable!]
  7. MAHENC Philippe, 2008. "Persuasive Subsidies in a Clean Environment," Working Papers 08.02.246, LERNA, University of Toulouse. [Downloadable!]
  8. Kosin Isariyawongse & Yasushi Kudo & Victor Tremblay, 2007. "Generic and Brand Advertising in Markets with Product Differentiation," Journal of Agricultural & Food Industrial Organization, Berkeley Electronic Press, vol. 5(1), pages 1179-1179. [Downloadable!] (restricted)
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