Non-Comparative versus Comparative Advertising of Quality
AbstractTwo firms produce a good with a horizontal and a vertical characteristic called quality. The difference in the unobservable quality levels determines how the firms share the market. We consider two scenarios: in the first one, firms disclose quality; in the second one, they send costly signals thereof. Under non-comparative advertising a firm advertises its own quality, under comparative advertising a firm advertises the quality differential. In either scenario, under comparative advertising the firms never advertise together which they may do under non-comparative advertising. Moreover, under comparative advertising firms do not advertise when the informational value to consumers is small.
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Bibliographic InfoPaper provided by CIRPEE in its series Cahiers de recherche with number 1139.
Date of creation: 2011
Date of revision:
Quality; Advertising; Disclosure; Signalling;
Other versions of this item:
- Emons, Winand & Fluet, Claude, 2012. "Non-comparative versus comparative advertising of quality," International Journal of Industrial Organization, Elsevier, vol. 30(4), pages 352-360.
- Winand Emons & Claude Fluet, 2011. "Non-comparative versus Comparative Advertising of Quality," CIRANO Working Papers 2011s-75, CIRANO.
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
- M37 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising - - - Advertising
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-12-19 (All new papers)
- NEP-BEC-2011-12-19 (Business Economics)
- NEP-COM-2011-12-19 (Industrial Competition)
- NEP-MKT-2011-12-19 (Marketing)
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