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| Author: | Morgan, J. Orzen, H. Sefton, M. |
| Title: | A laboratory study of advertising and price competition |
| Journal: | European Economic Review
2006 : FEB, VOL. 50:2, p. 323-347 |
| Index terms: | advertising consumer behaviour pricing |
| Language: | eng |
| Abstract: | In this article, the authors conduct a laboratory experiment in order to examine advertising and pricing in a market where consumers have different price sensitivities. The findings of the study indicate that higher advertising costs decrease demand for advertising and raise advertised prices. The increase in prices comes at the expense of consumers. |
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