Persuasive and Informative Advertising: A Classroom Experiment
The authors outline 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 the price. The experiments are intended for intermediate microeconomics or industrial organization courses, but might be used in any course that covers advertising models.
Volume (Year): 42 (2011)
Issue (Month): 1 (January)
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