Advertising and Entry: The Case of Physician Services
Journal of Political Economy
1990
This paper examines the entry implications of physician advertising. Evidence suggests that advertising inhibits entry into this market. Nevertheless. experienced physicians (incumbents), to whom advertising would offer the greatest financial benefit, in fact advertise less--a paradox that may be explained by nonfinancial concerns, such as unwillingness to break well-internalized professional norms against advertising. Physician advertising has risen sharply in recent years, and it appears that this trend will continue. If incumbents increasingly resort to advertising, there could be a substantial redistribution of income from less-well-established physicians to better-established ones.
- DOI
- 10.1086/261691
- Volume
- 98 (3)
- Pages
- 476-500
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref