Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

A Member of the Law Professor Blogs Network

Monday, February 6, 2012

Non-Comparative versus Comparative Advertising of Quality

Posted by D. Daniel Sokol

Winand Emons (University of Bern) and Claude Fluet (University of Quebec) have written on Non-Comparative versus Comparative Advertising of Quality.

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.

http://lawprofessors.typepad.com/antitrustprof_blog/2012/02/non-comparative-versus-comparative-advertising-of-quality.html

| Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef01675f4af9ff970b

Listed below are links to weblogs that reference Non-Comparative versus Comparative Advertising of Quality:

Comments

Post a comment