• norsk
    • English
  • English 
    • norsk
    • English
  • Login
View Item 
  •   Home
  • Norges Handelshøyskole
  • Department of Economics
  • Discussion papers (SAM)
  • View Item
  •   Home
  • Norges Handelshøyskole
  • Department of Economics
  • Discussion papers (SAM)
  • View Item
JavaScript is disabled for your browser. Some features of this site may not work without it.

On the competitive effect of informative advertising

Brekke, Kurt Richard; Kuhn, Michael
Working paper
Thumbnail
View/Open
dp2009-16.pdf (304.5Kb)
URI
http://hdl.handle.net/11250/163214
Date
2009-10
Metadata
Show full item record
Collections
  • Discussion papers (SAM) [586]
Abstract
This paper analyses the competitive effects of informative advertising. The seminal work by Grossman and Shapiro (1984) show that

informative advertising results in lower prices and that firms may benefit from advertising restrictions. A crucial assumption in their model

is that captive (partially informed) consumers are not price responsive. Replicating their model in a Hotelling duopoly version, we show

that results are in fact reversed if we allow for captive consumers to

respond to prices. We then use general demand functions and derive exact conditions for the competitive effect to prevail. A main result is that the procompetitive effect depends on the nature of competition

and the relative price elasticities of the monopoly and the competitive demand segments.
Publisher
Norwegian School of Economics and Business Administration. Department of Economics
Series
Discussion paper
2009:16

Contact Us | Send Feedback

Privacy policy
DSpace software copyright © 2002-2019  DuraSpace

Service from  Unit
 

 

Browse

ArchiveCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsDocument TypesJournalsThis CollectionBy Issue DateAuthorsTitlesSubjectsDocument TypesJournals

My Account

Login

Statistics

View Usage Statistics

Contact Us | Send Feedback

Privacy policy
DSpace software copyright © 2002-2019  DuraSpace

Service from  Unit