We extend the theory of advertising as a quality signal, using a model where an entrant can choose to advertise by comparing its product to that of an established incumbent. Comparative advertising, comparing quality of one's own product to that of a rival's, empowers the latter to file for court intervention if it believes the comparison to be false or misleading. We show that comparative advertising can be a signal in instances where generic advertising is not viable.
F. Barigozzi, P. Garella, M. Peitz (2009). With A Little Help From My Enemy: Comparative Advertising as a Signal of Quality. JOURNAL OF ECONOMICS & MANAGEMENT STRATEGY, 18(4), 1071-1094.
With A Little Help From My Enemy: Comparative Advertising as a Signal of Quality
BARIGOZZI, FRANCESCA;
2009
Abstract
We extend the theory of advertising as a quality signal, using a model where an entrant can choose to advertise by comparing its product to that of an established incumbent. Comparative advertising, comparing quality of one's own product to that of a rival's, empowers the latter to file for court intervention if it believes the comparison to be false or misleading. We show that comparative advertising can be a signal in instances where generic advertising is not viable.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
