1978
DOI: 10.2307/3003609
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Advertising and Welfare

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Cited by 327 publications
(201 citation statements)
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“…Well-known discussions of the welfare effects of advertising, such as Dixit and Norman (1978) and Becker and Murphy (1993), do not take into account the role of media firms as transmitters of advertising. 4 An early attempt to do so is in Spence and Owen (1977).…”
Section: Introductionmentioning
confidence: 99%
“…Well-known discussions of the welfare effects of advertising, such as Dixit and Norman (1978) and Becker and Murphy (1993), do not take into account the role of media firms as transmitters of advertising. 4 An early attempt to do so is in Spence and Owen (1977).…”
Section: Introductionmentioning
confidence: 99%
“…This is a well known microfoundated problem that many models share. Another problem, initially pointed out by Dixit and Norman (1978), arises when advertising shifts the individual utility function from which the demand curve is derived. The usual criticism regarding the welfare comparison also applies to the profit comparisons that we will carry out in our model.…”
mentioning
confidence: 99%
“…However, a consistent comparison of the size of the consumer surplus for different values of F is hindered by the fact that the utility function of each consumer depends on x, which might take on different values depending on the size of F. In turn, this hinders an analysis of the social welfare properties of the equilibrium as well. The problematic nature of welfare analyses in models with endogenously shifting preferences is well-known in the literature on persuasive advertising, see Dixit and Norman (1978). Dixit and Norman's approach is the following: compare welfare before and after the change of preferences using both the unchanged and the changed preferences for the consumer surplus.…”
Section: Remark 1 Let Us Represent the Total Equilibrium Costs Of Thementioning
confidence: 99%