false advertising by a firm in duopolistic competition where consumers can be distinguished according to whether or not they … form rational beliefs about the trustworthiness of advertising claims. We compare private and public law enforcement in the … form of the demand for injunctions against false advertising. From a welfare perspective, we show that it can be optimal …

engage in deceptive advertising, potentially fooling a buyer into thinking the product is better than it is. Although … deceptive advertising might seem to harm the buyer, we show that he could be better off when the low-quality seller can engage … in deceptive advertising than not. We characterize the optimal deterrence rule that a regulatory agency seeking to punish …

This paper shows how a firm can use non-targeted advertising to exploit consumers' desire for social status. A … monopolist sells multiple varieties of a good to consumers who each care about what others believe about his wealth. Advertising …

The paper formalizes the intuition that brands are consumed for image reasons and that advertising creates a brand …'s image. The key idea is that advertising informs the public of brand names and creates the possibility of conspicuous … consumption by rendering brands a signalling device. In a price competition framework, we show that advertising increases …

There is widespread evidence that some firms use false advertising to overstate the value of their products. We … advertising actively influences rational buyers, and analyze the effects of policy under different welfare objectives. We … establish precise conditions where policy optimally permits a positive level of false advertising, and show how these conditions …

a difficult task to craft qualifications in advertising that communicate a low level of scientific certainty. None of …

Firms invest significantly in advertising with the intent of influencing consumers favorably towards their goods. Along … with advertising, word of mouth also plays an important role in shaping consumer opinion about a firm's goods. In many … than positive ones). This research analyzes the impact of such word of mouth behaviors on a firm's advertising strategies …

The Internet provides media firms with an unparalleled opportunity to target advertising towards their consumers. This … paper considers how targeted advertising affects different media markets. I show that media firm profits rise and … advertising prices rise the most with the ability to target advertising in more competitive media markets and those in which …

This paper considers recent proposals for restricting keyword advertising using competitor brand names. Keyword … advertising is similar to many other widely used and valuable methods of marketing to the customers of rivals that increase … this type of informative and comparative advertising benefits consumers and, conversely, that restricting such advertising …

advertising. The experimental design overcomes limitations that have hindered previous investigations of this issue. Our study … uncovers dynamic advertising effects that have not been previously considered in the literature. We find that current … advertising does affect future sales but surprisingly, the affect is not always positive; for the firm's best customers the long …