Advertising Has Got You On The Run. Well-Being, Consumption and Leisure in a GE model
This paper presents a general equilibrium model where rms producing the consumption good in an oligopolistic market purchase advertising in order to increase their market shares. The model aims to evaluate the general equilibrium consequences of such a behaviour. It analyses the e ects of a taxation of advertising on demand for the nal good, on working time and on individual well-being. We conclude that, unless the direct e ects of advertising on utility are strong, a positive tax rate on advertising raises leisure, reduces consumption and increases well-being.
|Date of creation:||Feb 2013|
|Date of revision:|
|Contact details of provider:|| Postal: Piazzale Martelli, 8, 60121 Ancona|
Phone: +39 071 220 7100
Fax: +39 071 220 7102
Web page: http://www.dises.univpm.it/
More information through EDIRC
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.:
- Luigi Marattin, 2008. "The Impact Of Advertising On Aggregate Consumption: The Case Of Italy," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 3(3(5)_Fall), pages 223-231.
- GARY-BOBO, Robert J. & MICHEL, Philippe, .
"Informative advertising and competition: a noncooperative approach,"
CORE Discussion Papers RP
940, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Gary-Bobo, Robert J & Michel, Philippe, 1991. "Informative Advertising and Competition: A Noncooperative Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(2), pages 321-39, May.
- Gary-Bobo, R.J. & Michel, P., 1988. "Informative advertising and competition: a non-cooperative approach," CORE Discussion Papers 1988011, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Bill Dupor & Wen-Fang Liu, 2003. "Jealousy and Equilibrium Overconsumption," American Economic Review, American Economic Association, vol. 93(1), pages 423-428, March.
- Keith Cowling & Rattanasuda Poolsombat & Philip Tomlinson, 2011. "Advertising and labour supply: why do Americans work such long hours?," International Review of Applied Economics, Taylor & Francis Journals, vol. 25(3), pages 283-301.
- Lonnie Golden, 2009. "A Brief History of Long Work Time and the Contemporary Sources of Overwork," Journal of Business Ethics, Springer, vol. 84(2), pages 217-227, January.
- Nelson, Philip, 1974. "Advertising as Information," Journal of Political Economy, University of Chicago Press, vol. 82(4), pages 729-54, July/Aug..
- Robert B. Ekelund & Franklin G. Mixon & Rand W. Ressler, 1995. "Advertising and information: an empirical study of search, experience and credence goods," Journal of Economic Studies, Emerald Group Publishing, vol. 22(2), pages 33-43, May.
- Pintea, Mihaela I., 2010. "Leisure externalities: Implications for growth and welfare," Journal of Macroeconomics, Elsevier, vol. 32(4), pages 1025-1040, December.
When requesting a correction, please mention this item's handle: RePEc:anc:wpaper:389. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Maurizio Mariotti)
If references are entirely missing, you can add them using this form.