Title
Persuasive Advertising and Consumer Welfare
Document Type
Article
Publication Date
Fall 1992
Department
International Business and 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.