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Advertising, learning, and consumer choice in experience good markets: An empirical examination
Open accessAbstract
This article empirically analyzes different effects of advertising in a nondurable, experience good market. A dynamic learning model of consumer behavior is presented in which I allow both “informative” effects of advertising and “prestige” or “image” effects of advertising. This learning model is estimated using consumer level panel data tracking grocery purchases and advertising exposures over time. Empirical results suggest that in this market, advertising's primary effect was that of informing consumers. The estimates are used to quantify the value of this information to consumers and evaluate the welfare implications of an alternative advertising regulatory regime.
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“Our learning structure is not on specific attributes of the app, but rather on the idiosyncratic utility that the consumer can expect from experiencing the app, similar in spirit to Ackerberg (2003).”
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Metadata
- Authors
- Ackerberg, D. A.
- Affiliations
- University of California, Los Angeles (US)
- Corresponding author
- Ackerberg, Daniel A.
- Venue
- International Economic Review
- Publisher
- Wiley
- Published
- 2003-07-10
- Volume
- 44
- Issue
- 3
- Pages
- 1007-1040
- ISSN
- 0020-6598 (ISSN-L)
- 1468-2354
- OpenAlex
- W2151084171
- Cited by
- 476
- References
- 33
- Citations by year
- 2026: 7 · 2025: 20 · 2024: 14 · 2023: 6 · 2022: 21 · 2021: 21 · 2020: 17 · 2019: 24 · 2018: 30 · 2017: 28 · 2016: 29 · 2015: 18 · 2014: 30 · 2013: 24 · 2012: 36
- FWCI
- 58.34
- Type
- journal article
- Language
- en
- Open access
- bronze
- doi.org
- Locations
- International Economic Review (publishedVersion)
- SSRN Electronic Journal (submittedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Marketing › Consumer Market Behavior and Pricing
- Social Sciences › Business, Management and Accounting › Marketing › Marketing and Advertising Strategies
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Merger and Competition Analysis
- Keywords
- advertising effects, experience goods, consumer learning, informative advertising, consumer choice, advertising regulation, grocery purchases, advertising exposure
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