Title
Persuasive Advertising and Consumer Welfare
Document Type
Article
Publication Date
Fall 1992
Department
International Business & Management
Language
English
Publication Title
Pennsylvania Economic Review
Abstract
Economists studying the welfare effects of advertising typically face a dilemma: advertising appears to change tastes, but welfare effects are not calculable when tastes change. By using a model where taste do not change, Kotowitz and Mathewson (1979) derive a method for calculating the welfare effect of informative advertising. This paper presents a model of persuasive advertising in which tastes do not change; the welfare effect of persuasive advertising is therefore calculable using this model.
Recommended Citation
Erfle, Stephen. "Persuasive Advertising and Consumer Welfare." Pennsylvania Economic Review 2, no. 2 (1992): 14-30.