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Advertising Content

Author

Listed:
  • Simon P. Anderson
  • Régis Renault

Abstract

Empirical evidence suggests that most advertisements contain little direct informa- tion. Many do not mention prices. We analyze a firm'ss choice of advertising content and the information disclosed to consumers. A firm advertises only product informa- tion, price information, or both; and prefers to convey only limited product information if possible. Extending the "persuasion" game, we show that quality information takes precedence over price information and horizontal product information.Though it may help to force the firm to disclose some product information, it is socially harmful to force it to provide full information if it has sufficient ability to parse the information imparted.

Suggested Citation

  • Simon P. Anderson & Régis Renault, 2002. "Advertising Content," Virginia Economics Online Papers 362, University of Virginia, Department of Economics.
    • Handle: RePEc:vir:virpap:362
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    More about this item

    Keywords

    informative advertising; search; content analysis; information disclosure; persuasion game;
    All these keywords.

    JEL classification:

    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising

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