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Persuasive and Informative Advertising: A Classroom Experiment

Author

Listed:
  • Beth A. Freeborn

    (Department of Economics, College of William and Mary)

  • Jason P. Hulbert

    (Department of Economics, College of William and Mary)

Abstract

This paper outlines 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 price. The experiments are intended for intermediate microeconomics or industrial organization courses, though may be utilized in any course that covers advertising models.

Suggested Citation

  • Beth A. Freeborn & Jason P. Hulbert, 2009. "Persuasive and Informative Advertising: A Classroom Experiment," Working Papers 85, Department of Economics, College of William and Mary.
    • Handle: RePEc:cwm:wpaper:85
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    File URL: http://economics.wm.edu/wp/cwm_wp85.pdf
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    References listed on IDEAS

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    3. Rosemary Avery & Donald Kenkel & Dean R. Lillard & Alan Mathios, 2007. "Private Profits and Public Health: Does Advertising of Smoking Cessation Products Encourage Smokers to Quit?," Journal of Political Economy, University of Chicago Press, vol. 115(3), pages 447-481.
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    6. Yvonne Durham & Thomas Mckinnon & Craig Schulman, 2007. "Classroom Experiments: Not Just Fun And Games," Economic Inquiry, Western Economic Association International, vol. 45(1), pages 162-178, January.
    7. Rosenblat, Tanya, 2009. "Vertical Integration of Successive Monopolists: A Classroom Experiment," Staff General Research Papers Archive 13027, Iowa State University, Department of Economics.
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    Cited by:

    1. Correa, Manuel & García-Quero, Fernando & Ortega-Ortega, Marta, 2016. "A role-play to explain cartel behavior: Discussing the oligopolistic market," International Review of Economics Education, Elsevier, vol. 22(C), pages 8-15.

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    More about this item

    Keywords

    Classroom experiment; Advertising; Monopolist; Undergraduate Industrial Organization;
    All these keywords.

    JEL classification:

    • A22 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Undergraduate
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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