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Misleading Advertising in Mixed Markets: Consumer-orientation and welfare outcomes

Sharma, Ajay (2019): Misleading Advertising in Mixed Markets: Consumer-orientation and welfare outcomes. Forthcoming in: International Journal of Economics of Business

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Abstract

In this paper, we analyse misleading advertising competition between private firms (profit oriented) and consumer-oriented firms (concerned about consumer welfare) in the context of mixed markets. The nature of advertising in this paper is assumed to be non-rival in nature and is beneficial to all the firms in the market. We find that, both private and consumer-oriented firms incur positive expenditure on misleading advertising. Further, the profit of consumer-oriented firms is higher than that of private firms. Moreover, irrespective of whether firms are concerned about consumer welfare or not, the level of misleading advertising is socially excessive.

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  • Misleading Advertising in Mixed Markets: Consumer-orientation and welfare outcomes. (deposited 03 Oct 2019 07:37) [Currently Displayed]
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