Experimental evidence on advertising and price competition

Autor:	Ninghua Du
Rok vydání:	2009
Předmět:	TheoryofComputation_MISCELLANEOUS Factor price Mid price TheoryofComputation_GENERAL Advertising Microeconomics Product (business) Competition (economics) Reservation price Ask price Search cost Economics General Economics Econometrics and Finance Limit price
Zdroj:	New Zealand Economic Papers. 43:191-202
ISSN:	1943-4863 0077-9954
DOI:	10.1080/00779950903005523
Popis:	Theory (Du, 2008) predicts that equilibrium prices will be lower when firms' advertising conveys the price than when it does not convey the price. In the laboratory sessions, sellers make two decisions: what price to set, and whether to advertise to eliminate consumer search costs for their product. The two experimental conditions are (1) advertising the price, or (2) advertising before pricing. Data from ten sessions indicate that, as predicted, firms choose more often to advertise when advertising conveys price, and prices in the second treatment are significantly higher than prices in the first treatment.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::57fa5c48b3d78b5c112a3e2ad906e7de https://doi.org/10.1080/00779950903005523 Zobrazit plný text záznamu