Heterogeneous response across genders to tonal variation in messaging: Experimental evidence
Vincenzo Galasso, Tommaso Nannicini 22 September 2013
The perceived tone of a product or political advertisement affects public response – even holding constant the content of the message. This column provides evidence that men and women react differently to positive and negative tones in electoral advertisements. Negative advertising increases voter turnout among men but not women; positive advertising tends to win women’s sympathy but alienates men. This should inform gender-specific tailoring of targeted advertisements.
Persuasion is an art which is critical to success in politics, business, and a personal career. ’Persuasive communication‘ – as defined by DellaVigna and Gentzkow (2010) – is used, for example, to convince:
- Customers to purchase a new product.
- A recruiting committee to award a promotion.
- Citizens to vote for a candidate.
Most often this persuasion is exerted by individuals, firms or political parties who send competing messages to potential receivers.
gender, experimental economics, advertising, persuasive communication
Advertising and consumer prices
Ferdinand Rauch 13 November 2012
Advertising is expensive and thus raises the cost of goods, but it may encourage competition that keeps prices down. This column addresses the old question with data from a natural experiment brought about by tax harmonisation in Austria. It argues that on average advertising decreases consumer prices and estimates that if the 5% tax were abolished, consumer prices would decrease by about 0.25 percentage points.
There is an old debate in economic theory, which goes back at least to Marshall (1919), about whether advertising increases or decreases the prices of consumer goods. Some have argued that advertising provides information to consumers, such as information on prices or the existence of products (for example Butters 1977 or Stahl 1989). This information increases the degree of competition in a market, and thereby lowers consumer prices.
Microeconomic regulation Taxation
tax, consumer prices, advertising
The invisible hand meets the invisible gorilla: The economics and psychology of scarce attention
Diane Coyle 03 December 2011
Have economists been asleep at the wheel? This column reports from a conference on the psychology and economics of ‘scarce attention’. Among the ideas discussed is whether too much information can blind decision-making and whether this can explain why so many economists missed the warning signs of a crisis.
Since the financial crisis, many commentators have asked why so many economists failed to predict it – or even whether economics played a part in causing the crisis. A group of UK experts in 2009 attributed this failure to predict to a “psychology of denial” that had gripped the financial world as a whole.1
Frontiers of economic research Global crisis
media, psychology, Behavioural economics, advertising