With A Little Help From My Enemy: Comparative Advertising

Francesca Barigozzi, Paolo Garella and Martin Peitz

Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna

Abstract: Comparative advertising content dissers 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.

Date: 2002
New Economics Papers: this item is included in nep-cse, nep-mic and nep-mkt
References: Add references at CitEc
Citations:

Downloads: (external link)
http://amsacta.unibo.it/4857/1/441.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bol:bodewp:441

Access Statistics for this paper

More papers in Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna Contact information at EDIRC.
Bibliographic data for series maintained by Dipartimento Scienze Economiche, Universita' di Bologna ().