Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/147241
Authors: 
Alipranti, Maria
Mitrokostas, Evangelos
Petrakis, Emmanuel
Year of Publication: 
2016
Series/Report no.: 
DICE Discussion Paper 231
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.
Subjects: 
Comparative Advertising
Non-comparative advertising
Oligopoly
Product Differentiation
JEL: 
L13
M37
ISBN: 
978-3-86304-230-1
Document Type: 
Working Paper

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