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Non†Comparative and Comparative Advertising in Oligopolistic Markets

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  • Maria Alipranti
  • Evangelos Mitrokostas
  • Emmanuel Petrakis

Abstract

We study firms’ advertising strategies in an oligopolistic market in which both non†comparative and comparative advertising are present. We show that in equilibrium firms mix over the two types of advertising, with the intensity of comparative advertising exceeding that of non†comparative advertising; moreover, that the intensity of comparative increases relatively to non†comparative advertising as market competition intensifies. Interestingly, the use of comparative advertising may lead to higher consumers’ surplus and welfare in a mixed advertising market than in the absence of advertising or when either comparative or non†comparative advertising is not present.

Suggested Citation

  • Maria Alipranti & Evangelos Mitrokostas & Emmanuel Petrakis, 2018. "Non†Comparative and Comparative Advertising in Oligopolistic Markets," Manchester School, University of Manchester, vol. 86(3), pages 308-332, June.
    • Handle: RePEc:bla:manchs:v:86:y:2018:i:3:p:308-332
    DOI: 10.1111/manc.12184
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    Cited by:

    1. Yenipazarli, Arda, 2024. "Strategic incentives for comparative advertising investments in non-zero-sum competition and economic consequences," European Journal of Operational Research, Elsevier, vol. 312(3), pages 1059-1073.
    2. del Barrio-García, Salvador & Muñoz-Leiva, Francisco & Golden, Linda, 2020. "A review of comparative advertising research 1975–2018: Thematic and citation analyses," Journal of Business Research, Elsevier, vol. 121(C), pages 73-84.

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