With a Little Help from My Enemy: Comparative Advertising as a Signal of Quality

24 Pages Posted: 26 Oct 2009

See all articles by Francesca Barigozzi

Francesca Barigozzi

University of Bologna - Department of Economics

Paolo G. Garella

Department of Economics, Management, and Quantitative Methods

Martin Peitz

University of Mannheim - Department of Economics

Multiple version iconThere are 2 versions of this paper

Abstract

We extend the theory of advertising as a quality signal using a model where an entrant can choose to advertise by comparing its product to that of an established incumbent. Comparative advertising, comparing quality of one's own product to that of a rival's, empowers the latter to file for court intervention if it believes the comparison to be false or misleading. We show that comparative advertising can be a signal in instances where generic advertising is not viable.

Suggested Citation

Barigozzi, Francesca and Garella, Paolo G. and Peitz, Martin, With a Little Help from My Enemy: Comparative Advertising as a Signal of Quality. Journal of Economics & Management Strategy, Vol. 18, Issue 4, pp. 1071-1094, Winter 2009, Available at SSRN: https://ssrn.com/abstract=1492378 or http://dx.doi.org/10.1111/j.1530-9134.2009.00238.x

Francesca Barigozzi (Contact Author)

University of Bologna - Department of Economics ( email )

P.zza Scaravilli 2
40126 Bologna, 40126
Italy

Paolo G. Garella

Department of Economics, Management, and Quantitative Methods ( email )

Via Festa del Perdono, 7
Milan, 20122
Italy

Martin Peitz

University of Mannheim - Department of Economics ( email )

D-68131 Mannheim
Germany
+49 621 181-1835 (Phone)

HOME PAGE: http://peitz.vwl.uni-mannheim.de/

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
2
Abstract Views
593
PlumX Metrics