|
EconStor >
ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/46448
|
| | |
| Title: | | Persuading consumers with social attitudes  |
| Authors: | | Buehler, Stefan Halbheer, Daniel |
| Issue Date: | | 2011 |
| Series/Report no.: | | CESifo working paper: Industrial Organisation 3470 |
| Abstract: | | This paper analyzes persuasive advertising and pricing in oligopoly if firms sell differentiated products and consumers have heterogeneous social attitudes towards the consumption by others. Deriving product demand from primitives, we show that the demand-enhancing effect of persuasive advertising varies across consumers and increases in the average degree of conformity. In equilibrium, both quality and cost leaders choose higher advertising intensities and charge higher prices than their competitors. In addition, we show that an increase in the average degree of conformity among consumers reinforces asymmetries between firms. |
| Subjects: | | advertising social attitude consumption externality quality |
| JEL: | | D11 D43 L15 L21 M37 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
|
| Files in This Item:
| |
|
| No. of Downloads:
| |
| last Month |
last 3 Month |
total |
|
|
|
|
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/46448
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|