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Title: Non-comparative versus Comparative Advertising of Quality
Authors: Emons, Winand
Fluet, Claude
Issue Date: 2011-12
Publisher: Centre interuniversitaire de recherche en analyse des organisations (CIRANO)
Series/Report no.: Série scientifique (CIRANO);2011s-75
Scientific series (CIRANO);2011s-75
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.
URI: http://www.cirano.qc.ca/pdf/publication/2011s-75.pdf
https://depot.erudit.org/id/003643dd
ISSN: 1198-8177
Appears in Collections:Cahiers scientifiques

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