Advertising Content

43 Pages Posted: 3 Aug 2005

See all articles by Simon P. Anderson

Simon P. Anderson

University of Virginia - Department of Economics

Régis Renault

University of Cergy-Pontoise - THEMA

Multiple version iconThere are 2 versions of this paper

Date Written: May 2005

Abstract

Empirical evidence suggests that most advertisements contain little direct information. Many do not mention prices. We analyze a monopoly firm's choice of advertising content and the information disclosed to consumers. The firm advertizes only product information, price information, or both; and prefers to convey only limited product information if possible. It is socially harmful to force it to provide full information if it has sufficient ability to parse the information imparted, but nor does it help to restrict the information voluntarily provided.

Keywords: Informative advertising, search, content analysis, information disclosure

JEL Classification: D42, L15, M37

Suggested Citation

Anderson, Simon P. and Renault, Régis, Advertising Content (May 2005). CEPR Discussion Paper No. 5064, Available at SSRN: https://ssrn.com/abstract=775925

Simon P. Anderson (Contact Author)

University of Virginia - Department of Economics ( email )

P.O. Box 400182
Charlottesville, VA 22904-4182
United States
804-924-3861 (Phone)
804-982-2904 (Fax)

Régis Renault

University of Cergy-Pontoise - THEMA ( email )

33 boulevard du port
F-95011 Cergy-Pontoise Cedex, 95011
France
+33 1 34 25 6173 (Phone)

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