With a Little Help from My Enemy: Comparative Advertising as a Signal of Quality

Francesca Barigozzi, Paolo Garella and Martin Peitz

Journal of Economics & Management Strategy, 2009, vol. 18, issue 4, 1071-1094

Abstract: We extend the theory of advertising as a quality signal using a model where an entrant can choose to advertise by comparing its product to that of an established incumbent. Comparative advertising, comparing quality of one's own product to that of a rival's, empowers the latter to file for court intervention if it believes the comparison to be false or misleading. We show that comparative advertising can be a signal in instances where generic advertising is not viable.

Date: 2009
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Citations: View citations in EconPapers (7)

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https://doi.org/10.1111/j.1530-9134.2009.00238.x

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Working Paper: With a little help from my enemy: comparative advertising as a signal of quality (2008)
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