2018
DOI: 10.1287/mnsc.2016.2665
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Deceptive Advertising with Rational Buyers

Abstract: We study a Bertrand game where two sellers supplying products of different and unverifiable qualities can outwit potential clients through their (costly) deceptive advertising. We characterize a class of pooling equilibria where sellers post the same price regardless of their quality and low quality ones deceive buyers. Although in these equilibria low quality goods are purchased with positive probability, the buyer (expected) utility can be higher than in a fully separating equilibrium. It is also argued that… Show more

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Cited by 51 publications
(24 citation statements)
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References 52 publications
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“…Accordingly, our dependent variable (RESTR) is a dummy taking value one if the firm obtains (a) an increase in total credit granted, or (b) a maturity extension at least once in the three years following the distress event; and value zero otherwise. As noted in Sub-section 3.1, around25 28 percent of the firms in our sample obtain one of these interventions.At this stage, data are organized as a cross-section with a limited dependent variable and we estimate a probit model of the type prob (y = 1) i(between t and t+3)…”
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confidence: 68%
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“…Accordingly, our dependent variable (RESTR) is a dummy taking value one if the firm obtains (a) an increase in total credit granted, or (b) a maturity extension at least once in the three years following the distress event; and value zero otherwise. As noted in Sub-section 3.1, around25 28 percent of the firms in our sample obtain one of these interventions.At this stage, data are organized as a cross-section with a limited dependent variable and we estimate a probit model of the type prob (y = 1) i(between t and t+3)…”
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confidence: 68%
“…This number is normalized with the number of total credit relationships each bank of every group has individually within the sample 25. A side estimate, not reported but available upon request, confirms the positive and significant correlation between the number of banks and the probability to meet again in the future among banks.…”
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confidence: 84%
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“…Likewise, there are evident practical difficulties in the way of the remedy that you propose, 24 The problem was once again one of differential birth rate: "So long as people who lack intelligence continue to spawn others who lack intelligence we shall have more of such people than we can possibly employ at good wages" (66). 25 inasmuch as an almost white and an almost black may be own brothers." 27 Other commentators focused on the proposed restrictions on marriage.…”
Section: After Harvard: What Must We Do To Save Our Economic System?mentioning
confidence: 99%
“…Usually all these techniques (24) collapse the temporal data into a single matrix by summing (with or without weights) the records corresponding to the each time period. Then similaritybased measures like the Katz centrality (25) or the singular value decompositions (SVD) are applied to perform links prediction. This paper instead is the first attempt to use tensor decompositions and multi-way analysis (26,27) to extract complex relationships from stock prices' time series and use them in a link prediction application.…”
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confidence: 99%