With a Little Help from my Enemy: Comparative Advertising

Barigozzi, Francesca ; Garella, Paolo G. ; Peitz, Martin (2002) With a Little Help from my Enemy: Comparative Advertising. DOI 10.6092/unibo/amsacta/647.
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Abstract

Comparative advertising content differs from generic. We discover that dissipative advertising has consequences depending upon content and cost. Comparison advertising may trigger legal action by rival firms 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
Tipologia del documento
Monografia (Working paper)
Autori
AutoreAffiliazioneORCID
Barigozzi, Francesca
Garella, Paolo G.
Peitz, Martin
Informazioni aggiuntive
JEL classification: L15, M37, L13.
Parole chiave
quality signaling advertising entry competition
Settori scientifico-disciplinari
DOI
Data di deposito
17 Giu 2004
Ultima modifica
17 Feb 2016 13:59
URI

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