Download This PaperAdvertising Content
58 Pages Posted: 25 Mar 2004
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Advertising Content
Date Written: March 2004
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 advertises 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: Suggested Citation
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