Non-Comparative and Comparative Advertising in Oligopolistic Markets

Maria Alipranti, Evangelos Mitrokostas, Emmanuel Petrakis

Research output: Contribution to journalArticle

Abstract

We study firms’ advertising strategies in an oligopolistic market in which both non-comparative and comparative advertising are present. We show that in equilibrium firms mix over the two types of advertising, with the intensity of comparative advertising exceeding that of non-comparative advertising; moreover, that the intensity of comparative increases relatively to non-comparative advertising as market competition intensifies. Interestingly, the use of comparative advertising may lead to higher consumers’ surplus and welfare in a mixed advertising market than in the absence of advertising or when either comparative or non-comparative advertising is not present.

Original languageEnglish
Pages (from-to)308-332
Number of pages25
JournalManchester School
Volume86
Issue number3
Early online date24 Dec 2017
DOIs
Publication statusPublished - 6 Apr 2018

Fingerprint

Comparative advertising
Consumer surplus
Advertising strategy
Consumer welfare
Market competition

Cite this

Alipranti, Maria ; Mitrokostas, Evangelos ; Petrakis, Emmanuel. / Non-Comparative and Comparative Advertising in Oligopolistic Markets. In: Manchester School. 2018 ; Vol. 86, No. 3. pp. 308-332.
@article{57a4b1ae215f4d35885c4da1de710985,
title = "Non-Comparative and Comparative Advertising in Oligopolistic Markets",
abstract = "We study firms’ advertising strategies in an oligopolistic market in which both non-comparative and comparative advertising are present. We show that in equilibrium firms mix over the two types of advertising, with the intensity of comparative advertising exceeding that of non-comparative advertising; moreover, that the intensity of comparative increases relatively to non-comparative advertising as market competition intensifies. Interestingly, the use of comparative advertising may lead to higher consumers’ surplus and welfare in a mixed advertising market than in the absence of advertising or when either comparative or non-comparative advertising is not present.",
author = "Maria Alipranti and Evangelos Mitrokostas and Emmanuel Petrakis",
year = "2018",
month = "4",
day = "6",
doi = "10.1111/manc.12184",
language = "English",
volume = "86",
pages = "308--332",
journal = "Manchester School",
issn = "1463-6786",
publisher = "Wiley-Blackwell",
number = "3",

}

Alipranti, M, Mitrokostas, E & Petrakis, E 2018, 'Non-Comparative and Comparative Advertising in Oligopolistic Markets', Manchester School, vol. 86, no. 3, pp. 308-332. https://doi.org/10.1111/manc.12184

Non-Comparative and Comparative Advertising in Oligopolistic Markets. / Alipranti, Maria; Mitrokostas, Evangelos; Petrakis, Emmanuel.

In: Manchester School, Vol. 86, No. 3, 06.04.2018, p. 308-332.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Non-Comparative and Comparative Advertising in Oligopolistic Markets

AU - Alipranti, Maria

AU - Mitrokostas, Evangelos

AU - Petrakis, Emmanuel

PY - 2018/4/6

Y1 - 2018/4/6

N2 - We study firms’ advertising strategies in an oligopolistic market in which both non-comparative and comparative advertising are present. We show that in equilibrium firms mix over the two types of advertising, with the intensity of comparative advertising exceeding that of non-comparative advertising; moreover, that the intensity of comparative increases relatively to non-comparative advertising as market competition intensifies. Interestingly, the use of comparative advertising may lead to higher consumers’ surplus and welfare in a mixed advertising market than in the absence of advertising or when either comparative or non-comparative advertising is not present.

AB - We study firms’ advertising strategies in an oligopolistic market in which both non-comparative and comparative advertising are present. We show that in equilibrium firms mix over the two types of advertising, with the intensity of comparative advertising exceeding that of non-comparative advertising; moreover, that the intensity of comparative increases relatively to non-comparative advertising as market competition intensifies. Interestingly, the use of comparative advertising may lead to higher consumers’ surplus and welfare in a mixed advertising market than in the absence of advertising or when either comparative or non-comparative advertising is not present.

UR - http://www.scopus.com/inward/record.url?scp=85045441736&partnerID=8YFLogxK

UR - https://onlinelibrary.wiley.com/doi/abs/10.1111/manc.12184

U2 - 10.1111/manc.12184

DO - 10.1111/manc.12184

M3 - Article

VL - 86

SP - 308

EP - 332

JO - Manchester School

JF - Manchester School

SN - 1463-6786

IS - 3

ER -