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Advertising and Competition in Routine Legal Service Markets

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Author Info
Schroeter, John R.
Smith, Scott L.
Cox, Steven R.

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Abstract

This study's findings, together with the results of earlier studies of the relationship between advertising and market prices, provide considerable empirical support for the pro-competitive view of seller advertising. Data on attorney fees and advertising practices in seventeen metropolitan areas across the U.S. were used to estimate the effect of market advertising intensity on firm demand elasticities, holding other possible influencing factors constant. The results obtained for all three routine legal services examined are consistent with the hypothesis that advertising increases competition among sellers in a market.

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Publisher Info
Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 11115.

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Date of creation: 04 Dec 2003
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Publication status: Published in Journal of Industrial Economics, September 1987, Vol. 36, No. 1, pp. 49-60.
Handle: RePEc:isu:genres:11115

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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
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L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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  1. David Paton, 1998. "Who A dvertises Prices? A Firm Level Study Based on Survey Data," International Journal of the Economics of Business, Taylor and Francis Journals, vol. 5(1), pages 57-75, February. [Downloadable!] (restricted)
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This page was last updated on 2009-12-15.

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