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IESEG School of Management ( IÉSEG )

Code Cours :



Niveau Année de formation Période Langue d'enseignement 
Professeur(s) responsable(s)G.FERRIER
Intervenant(s)Gary FERRIER

Pré requis

Students should understand the basic econonomic concepts of demand, elasticity, consumer surplus, and econmies of scale,

Objectifs du cours

Describe and compare the persuasive, informative, and complementary views of advertising.
Identify the determinants of a firm's optimal level of advertising and use them to predict how the optimal level varies across time and products.
Evaluate the effects of adverting on price, price elasticity, sales, and market share.
Contrast advertising with other signals of product quality.
Appraise the tax treatment of advertising expenditures.
Summarize the economic rationale for regulating advertising.
Explain the challenges faced by advertisers in the information age.
Use course concepts to analyze observed advertising activities.

Contenu du cours

Why study the economics of advertising?
Review needed economic concepts.
Economic functions of advertising--
Advertising as persuasion,
Advertising as information,
Advertising as value enhancement.
Determinants of the profit maximizing advertising-to-sales ratio.
The effects of advertising on price, price elasticity, sales, and market share.
Signaling product quality.
Duration of advertising's impact.
Advertising and the economics of attention.
Behvioral economics and advertising.
Regulation of advertising.

Modalités d'enseignement

Organisation du cours

TypeNombre d'heuresRemarques
Face to face
Interactive class16,00   Four hours of classroom time over four days.
Independent work
Reference manual 's readings8,00   Reading articles and reviewing PowerPoint slides. Working practice problems to prepare for the final exam.
Independent study
Estimated personal workload10,00  
Charge de travail globale de l'étudiant50,00  

Méthodes pédagogiques


    Assessment is based on three written assignments (30,00%) and a final exam consisting of short-answer and essay questions (70.00%).

    Type de ContrôleDuréeNombrePondération
    Final Exam
    Written exam2,00170,00
    Written Report1,00330,00
    TOTAL     100,00


    • The Economic Analysis of Advertising by Kyle Bagwell (available online through The Academic Commons). - -

    • Additional reading materials are provided online; they supplement the PowerPoint slides that are also provided online. - -

    Ressources internet

    * Informations non contractuelles et pouvant être soumises à modification
    Vidéo : Un campus à vivre
    Notre chaîne Youtube