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Wintertime for Deceptive Advertising?

Jonathan Zinman and Eric Zitzewitz

American Economic Journal: Applied Economics, 2016, vol. 8, issue 1, 177-92

Abstract: Casual empiricism suggests that deceptive advertising about product quality is prevalent, and several classes of theories explore its causes and consequences. We provide unusually sharp empirical evidence on its extent, mechanics, and dynamics. Ski resorts self-report substantially more natural snowfall than comparable government sources. The difference is more pronounced on weekends, despite third-party evidence that snowfall is uniform throughout the week—as one would expect given plausibly greater returns to exaggeration on weekends. Exaggeration is greater for resorts that plausibly reap greater benefits from it: those with expert terrain and those not offering money back guarantees. (JEL D83, L15, L83, M37, Z31)

JEL-codes: D83 L15 L83 M37 Z31 (search for similar items in EconPapers)
Date: 2016
Note: DOI: 10.1257/app.20130346
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Working Paper: Wintertime for Deceptive Advertising? (2012) Downloads
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