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Persuasive and Informative Advertising: A Classroom Experiment

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Author Info
Beth A. Freeborn () (Department of Economics, College of William and Mary)
Jason P. Hulbert () (Department of Economics, College of William and Mary)

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Abstract

This paper outlines 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 price. The experiments are intended for intermediate microeconomics or industrial organization courses, though may be utilized in any course that covers advertising models.

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File URL: http://web.wm.edu/economics/wp/cwm_wp85.pdf
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Publisher Info
Paper provided by Department of Economics, College of William and Mary in its series Working Papers with number 85.

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Length: 31 pages
Date of creation: 11 Jun 2009
Date of revision:
Handle: RePEc:cwm:wpaper:85

Contact details of provider:
Postal: P.O. Box 8795, Williamsburg, VA 23187-8795
Phone: (757) 221-4311
Fax: (757) 221-2390
Web page: http://www.wm.edu/economics/
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For technical questions regarding this item, or to correct its listing, contact: (Beth A Freeborn).

Related research
Keywords: Classroom experiment; Advertising; Monopolist; Undergraduate Industrial Organization;

Find related papers by JEL classification:
A22 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Undergraduate
C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
D21 - Microeconomics - - Production and Organizations - - - Firm Behavior
L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. 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.
  2. 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.
  3. Atin Basuchoudhary & Christopher Metcalf & Kai Pommerenke & David Reiley & Christian Rojas & Marzena Rostek & James Stodder, 2008. "Price Discrimination and Resale: A Classroom Experiment," Journal of Economic Education, Helen Dwight Reid Foundation, vol. 39(3), pages 229-244. [Downloadable!]
  4. Avinash Dixit & Victor Norman, 1978. "Advertising and Welfare," Bell Journal of Economics, The RAND Corporation, vol. 9(1), pages 1-17, Spring. [Downloadable!] (restricted)
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Statistics
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This page was last updated on 2009-11-16.

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