The Effect of Laws Against Price Advertising: The Case of Retail Gasoline

Maurizi, Alex

doi:10.1111/j.1465-7295.1972.tb01607.x

Cited by 12 publications

(8 citation statements)

References 5 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…In a well-known paper, Benham (1972) found that eyeglass prices in 1963 were higher in states that banned advertising. Maurizi (1972), Steiner (1973) and Cady (1976) obtain similar findings for gasoline, toys and drugs. These studies suggest that allowing advertising increases the price elasticity of demand, thus lowering price in equilibrium.…”

Section: Background and Literature Reviewsupporting

confidence: 85%

The impact of advertising on consumer price sensitivity in experience goods markets

2007

View full text Add to dashboard Cite

show abstract

Section: Background and Literature Reviewsupporting

confidence: 85%

The impact of advertising on consumer price sensitivity in experience goods markets

2007

View full text Add to dashboard Cite

show abstract

“…Firms gasoline prices across cities, and Begun (1978, 1980) and Kwoka (1984), who compare prices of optometric services across states. These studies generally, although not always -see Maurizi (1972) -find that prices are higher in jurisdictions forbidding advertising.…”

Section: Review Of Relevant Literaturementioning

confidence: 99%

“…This is the approach of Benham (1972), who compares eyeglass prices across states, Cady (1976) who compares prescription drug prices across states, Maurizi (1972), who compares retail 7 An important deviation to the conventional wisdom is Peters (1984). He develops a theoretical explanation for the possibility that price advertising can raise average price in an industry.…”

Section: Review Of Relevant Literaturementioning

confidence: 99%

“…Prior to May 13, 1996, 1 See also Nelson (1970Nelson ( , 1974. 2 This is the approach of Benham (1972), Feldman and Begun (1978), and Kwoka (1984), who compare prices of eyeglasses and optometric services across states, Cady (1976), who compares prescription drug prices across states, and Maurizi (1972), who compares gasoline prices across cities. 3 For example, we might expect more lobbying for advertising restrictions in states with fewer concentrated sellers, where we would also see higher prices.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

The Effect of Price Advertising on Prices: Evidence in the Wake of 44 Liquormart

Milyo

Waldfogel

1999

American Economic Review

108

View full text Add to dashboard Cite

The 44 Liquormart decision, eliminating Rhode Island's ban on liquor price advertising, made Rhode Island the subject of a natural experiment for measuring the effect of advertising on prices. Using Massachusetts prices as controls, we find that advertising stores substantially cut only prices of the products that they advertise. Prices of other products, at both advertising and nonadvertising stores, do not change. Advertising stores cut their prices on products advertised by rivals, while nonadvertising stores do not. We find no reductions in price dispersion across stores. Newspaper-advertising stores appear to draw a higher share of customers after they advertise. (JEL L11, L51, L66)

show abstract

“…Elle favorise les entreprises ayant les prix les plus bas et à ce titre abaisse le prix moyen constaté sur le marché (Smallwood et Conlisk, 1979). Certaines recherches empiriques, qui ont analysé ce rôle informatif, le confirment (Carlton et Perloff, 2008 : 671) -notamment pour le marché des médicaments (Cady, 1976), des liqueurs (Luksetich et Lofgren, 1976), des jouets (Steiner, 1973) et de l'essence à la station (Maurizi, 1972). L'une des études les plus citées est celle de Benham (1972) sur le prix des verres correcteurs aux États-Unis.…”

unclassified

Information versus persuasion : la controverse autour de l’impact de la publicité sur les préférences des consommateurs

Lanotte

Rossi

2014

View full text Add to dashboard Cite

Résumé de l'articleLa publicité reste un sujet majeur de discussion en économie, notamment du fait de son influence sur le comportement du consommateur et de son incidence sur la fonction de demande. Alors qu'une partie des économistes envisage la publicité sous un angle informatif, d'autres insistent davantage sur sa dimension persuasive. Cette opposition originelle fonde l'approche économique de la publicité sur un clivage dialectique fécond mais elle induit un biais normatif en matière de régulation. Cette dialectisation originelle du débat théorique illustre la difficulté des économistes à comprendre : 1) la relation entre la publicité et l'évolution des préférences des consommateurs; 2) la fonction qui lui est reliée. Nous nous proposons d'analyser ce diptyque fondateur en questionnant sa portée et ses limites. Résumé -La publicité reste un sujet majeur de discussion en économie, notamment du fait de son influence sur le comportement du consommateur et de son incidence sur la fonction de demande. Alors qu'une partie des économistes envisage la publicité sous un angle informatif, d'autres insistent davantage sur sa dimension persuasive. Cette opposition originelle fonde l'approche économique de la publicité sur un clivage dialectique fécond mais elle induit un biais normatif en matière de régulation. Cette dialectisation originelle du débat théorique illustre la difficulté des économistes à comprendre : 1) la relation entre la publicité et l'évolution des préférences des consommateurs; 2) la fonction qui lui est reliée. Nous nous proposons d'analyser ce diptyque fondateur en questionnant sa portée et ses limites.abstract -Advertising remains a major topic in economics, particularly because of its impact on consumers' behavior and its impact on the demand function. While some economists consider advertising from an informative side, others focus more on its persuasive side. In this study, we affirm that this original opposition has based the economic approach to advertising on a fruitful dialectic cleavage inducing a normative bias on regulation. This original opposition mainly reveals the difficulty some economists have to clarify: 1) the relationship between advertising and the evolution of consumers' preferences; 2) the function to which advertising is related to. We propose to analyze the scope and limitations of this seminal dialectical cleavage.

show abstract

The Effect of Laws Against Price Advertising: The Case of Retail Gasoline

Cited by 12 publications

References 5 publications

The impact of advertising on consumer price sensitivity in experience goods markets

The impact of advertising on consumer price sensitivity in experience goods markets

The Effect of Price Advertising on Prices: Evidence in the Wake of 44 Liquormart

Information versus persuasion : la controverse autour de l’impact de la publicité sur les préférences des consommateurs

Contact Info

Product

Resources

About