Information Search and Banned Product Advertising: An Indifference Curve Approach

Abstract

A new wave of actual and proposed laws prohibiting certain product advertising has recently occurred and threatens to affect the industry's freedom to conduct commerce and especially the public's right to be informed.

Public attention is again focused on the informational/persuasional aspects of product advertising. This article synthesizes the previous research on this subject as it relates to the search for product information and presents an alternative economic model to help explain consumer purchasing behavior. The economic implications of advertising bans are then examined within the context of the model, and the specific case of contraceptives illustrates its applicability.