Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/113747
Authors: 
Anderson, Simon P.
Ciliberto, Federico
Liaukonyte, Jura
Renault, Régis
Year of Publication: 
2015
Series/Report no.: 
CESifo Working Paper 5418
Abstract: 
We derive equilibrium incentives to use comparative advertising that pushes up own brand perception and pulls down the brand image of targeted rivals. Data on content and spending for all TV advertisements in OTC analgesics enable us to construct matrices of dollar rival targeting and estimate the structural model. Using brands. optimal choices, these attack matrices identify diversion ratios, from which we derive comparative advertising damage measures. We find that comparative advertising causes more damage to the targeted rival than benefit to the advertiser. We simulate banning comparative advertising to find industry profits rise.
Subjects: 
comparative advertising
advertising targets
diversion ratios
attack matrix
push and pull effects
analgesics
JEL: 
L13
M37
L65
Document Type: 
Working Paper

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