Advertising and Competition
Chapter appearing in Issues in Competition Law and Policy by American Bar Association, ed. Wayne Dale Collins, Forthcoming
24 Pages Posted: 26 Apr 2015
Date Written: April 1, 2009
This chapter provides an introduction to the economic analysis of advertising, providing the foundation that is needed to understand how advertising relates to product differentiation and to various antitrust theories that directly involve advertising. As explained below, advertising is an important competitive tool that firms use to convey information to potential purchasers about their products’ performance characteristics and price. This makes advertising conduct an important market attribute.
Suggested Citation: Suggested Citation