Abstract
This paper considers an economy where a public good is provided via advertising. The consumers' preferences are represented using the 'characteristics' approach', and the advertising has a potentially enhancing effect on the characteristics' content of a given commodity. We define competitive equilibria and show they exist. The welfare properties of the resulting allocations are analyzed, and conditions for over- and under-production of the public good are provided.
Original language | English |
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Pages (from-to) | 309-321 |
Number of pages | 13 |
Journal | Journal of Public Economics |
Volume | 54 |
Issue number | 2 |
DOIs | |
State | Published - 1 Jan 1994 |
ASJC Scopus subject areas
- Finance
- Economics and Econometrics