Non-Comparative and Comparative Advertising in Oligopolistic Markets

Alipranti, Maria, Mitrokostas, Evangelos and Petrakis, Emmanuel (2018). Non-Comparative and Comparative Advertising in Oligopolistic Markets. Manchester School, 86 (3), pp. 308-332.

Abstract

We study firms’ advertising strategies in an oligopolistic market in which both non-comparative and comparative advertising are present. We show that in equilibrium firms mix over the two types of advertising, with the intensity of comparative advertising exceeding that of non-comparative advertising; moreover, that the intensity of comparative increases relatively to non-comparative advertising as market competition intensifies. Interestingly, the use of comparative advertising may lead to higher consumers’ surplus and welfare in a mixed advertising market than in the absence of advertising or when either comparative or non-comparative advertising is not present.

Publication DOI: https://doi.org/10.1111/manc.12184
Divisions: Aston Business School
Aston Business School > Economics finance & entrepreneurship
Uncontrolled Keywords: Economics and Econometrics
Full Text Link: http://www.dice ... as_Petrakis.pdf
Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
https://onlinel ... 1111/manc.12184 (Publisher URL)
Published Date: 2018-04-06
Authors: Alipranti, Maria
Mitrokostas, Evangelos
Petrakis, Emmanuel

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