Competitive Persuasive Advertising Under Consumer Loss Aversion

05 March 2021
Dr. Oliver März

NERA Consultant Dr. Oliver März authored an article titled “Competitive persuasive advertising under consumer loss aversion”, published in the peer-reviewed journal Economics Letters. The article suggests a new way to theoretically model the effects of advertising when consumers are loss averse. This assumes that advertising renders products are more salient and attracts consumers’ attention. The model shows this form of advertising, under certain conditions, mitigates consumers' sensation of losses from paying higher prices and has strictly anti-competitive effects.

Dr. März is an expert in the application of microeconomic theory to describe the competitive behavior of firms. The article was published in Volume 185 of Economics Letters, released in December 2019.