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Contribution Details
| Type | Journal Article |
| Scope | Discipline-based scholarship |
| Title | Persuading consumers with social attitudes |
| Organization Unit | |
| Authors |
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| Item Subtype | Original Work |
| Refereed | Yes |
| Status | Published in final form |
| Language |
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| Journal Title | Journal of Economic Behavior & Organization |
| Publisher | Elsevier |
| Geographical Reach | international |
| ISSN | 0167-2681 |
| Volume | 84 |
| Number | 1 |
| Page Range | 439 - 450 |
| Date | 2012 |
| Abstract Text | This paper provides a formal analysis of persuasive advertising when firms compete for consumers with heterogenous social attitudes towards the consumption by others. Deriving product demand from primitives, we show that the demand-enhancing effect of persuasive advertising varies across consumers and increases in the average degree of conformity. In equilibrium, both quality and cost leaders choose higher advertising intensities and charge higher prices than their competitors. In addition, we show that an increase in the average degree of conformity among consumers reinforces asymmetries between firms. |
| Digital Object Identifier | 10.1016/j.jebo.2012.04.013 |
| Other Identification Number | merlin-id:7650 |
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