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Non-comparative versus comparative advertising of quality

Winand Emons () and Claude Fluet ()

International Journal of Industrial Organization, 2012, vol. 30, issue 4, 352-360

Abstract: Two firms produce a good with a horizontal and a vertical characteristic called quality. The difference in the unobservable quality levels determines how the firms share the market. We consider two scenarios: In the first one, firms disclose quality; in the second one, they send costly signals thereof. Under non-comparative advertising a firm advertises its own quality, under comparative advertising a firm advertises the quality differential. In either scenario, under comparative advertising the firms never advertise together which they may do under non-comparative advertising. Moreover, under comparative advertising firms do not advertise when the informational value to consumers is small.

Keywords: Quality; Advertising; Disclosure; Signaling (search for similar items in EconPapers)
JEL-codes: D82 L15 M37 (search for similar items in EconPapers)
Date: 2012
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Related works:
Working Paper: Non-comparative versus Comparative Advertising of Quality (2011) Downloads
Working Paper: Non-Comparative versus Comparative Advertising of Quality (2011) Downloads
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