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INFORMATION STRUCTURES OF PRODUCT MARKETS
Author(s) -
CAVES RICHARD E.
Publication year - 1986
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.1986.tb01806.x
Subject(s) - product (mathematics) , business , promotion (chess) , information good , microeconomics , marketing , advertising , economics , commerce , industrial organization , the internet , computer science , geometry , mathematics , politics , world wide web , political science , law
Buyers demand continuing information flows to guide their choices among competing product brands. They select portfolios of information types, some supplied by sellers of the branded goods, some not. This paper investigates the determinants of businesses' outlays on information (media advertising, sales force, other sales promotion). They include buyers' overall demands for information, buyers' access to sources not controlled by the seller, the relative efficiency of seller‐supplied information, and competitive conditions in the product market. The hypotheses about effects on sellers' total information outlays are strongly supported. Some evidence appears on determinants of the mixture of information types they provide.