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Misleading advertising in mixed markets: non-profit orientation and welfare outcomes
Published in Informa UK Limited
Volume: 27
Issue: 2
Pages: 291 - 302
In this article, 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 article 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.
About the journal
JournalInternational Journal of the Economics of Business
PublisherInforma UK Limited
Open Access0