With a Little Help from my Enemy: Comparative Advertising

Barigozzi, Francesca ; Garella, Paolo ; Peitz, Martin (2002) With a Little Help from my Enemy: Comparative Advertising. Bologna: Dipartimento di Scienze economiche DSE, p. 31. DOI 10.6092/unibo/amsacta/4857. In: Quaderni - Working Paper DSE (441). ISSN 2282-6483.
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Abstract

Comparative advertising content di¤ers from generic. We discover that dissipative advertising has consequences depending upon content and cost. Comparison advertising may trigger legal action by rival …rms that are named. In the model an entrant signals its product quality. By a comparative ad the entrant refers to the incumbent’s product. We show that comparison can enhance the signaling potential of dissipative advertising. From the viewpoint of the entrant, the choice of comparative advertising empowers the rival with the right to sue; generic does not. Consumers therefore infer that if the entrant uses comparative instead of generic ads it has a strong case.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Barigozzi, Francesca
Garella, Paolo
Peitz, Martin
Keywords
quality, signaling, advertising, entry, competition
Subjects
ISSN
2282-6483
DOI
Deposit date
14 Mar 2016 15:30
Last modified
14 Mar 2016 15:30
URI

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