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"Advertising Content"

Publication Title: Advertising Content
Author(s): Simon Anderson and Régis Renault

Year: 2006
Published in: The American Economic Review

Topic of the Publication: - Information Goods

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, nor does it help to restrict the information voluntarily provided.
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