Generic Advertising and Product Differentiation Revisited
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John M. Crespi
This paper revisits the analysis of generic commodity advertising under product differentiation by Crespi and Marette. Crespi and Marette had shown that a dominant firm producing high-quality goods and facing a competitive fringe of lower quality producers could be harmed by a generic advertising campaign while the fringe was left unaffected. Under this dominant-firm model, a question remained why these producers might support a program for which they were indifferent. In this paper we show that under a duopoly model a high-quality firm may be harmed while its lower-quality rival may be made better off by a generic program, thus helping to explain why some producers might favor a program while others do not. Further, this paper dismisses the claim made by some litigants that increased branded advertising is the result of a deleterious effect of generic advertising.
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
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- Contract Selectivity, Food Safety, and Traceability
- Generic Advertising and Product Differentiation Revisited
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- Market and Welfare Effects of Collusion with Reference to Multi-Product Food Oligopoly and Oligopsony
- Generic and Brand Advertising in Markets with Product Differentiation
- The Value of Collective Reputation for Environmentally-Friendly Production Methods: The Case of Val di Gresta
- Consumer Response to Information and Second-Generation Genetically Modified Food in India
- Fair Trade Labeling: Inside or Outside Supermarkets?
- Scale and Transaction Costs in the U.S. Biopower Industry
- Cherry Picking: Should Sellers Let Buyers Sort?
Articles in the same Issue
- Article
- Measuring the Degree of Retail Competition in U.S. Cheese Markets
- Contract Selectivity, Food Safety, and Traceability
- Generic Advertising and Product Differentiation Revisited
- Got Organic Milk? Consumer Valuations of Milk Labels after the Implementation of the USDA Organic Seal
- Market and Welfare Effects of Collusion with Reference to Multi-Product Food Oligopoly and Oligopsony
- Generic and Brand Advertising in Markets with Product Differentiation
- The Value of Collective Reputation for Environmentally-Friendly Production Methods: The Case of Val di Gresta
- Consumer Response to Information and Second-Generation Genetically Modified Food in India
- Fair Trade Labeling: Inside or Outside Supermarkets?
- Scale and Transaction Costs in the U.S. Biopower Industry
- Cherry Picking: Should Sellers Let Buyers Sort?
