A PYMNTS Company

Advertising and Competition

By  |  April 28, 2015

Posted by Social Science Research Network

Advertising and Competition Anthony J. Dukes (University of Southern California)

Abstract: 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.