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Abstract

This article reports a study that tests predictions about skepticism toward advertising derived from the economics of information. It examines a sample of consumers from the former West Germany and compares them to a sample from the former East Germany. As they are another example of a developed, Western economy, predictions for the West Germans were the same as those hypothesized by Ford et al. (1990) for their sample of U.S. consumers. In addition, based on their having lived for 45 years under Communism, the study advances hypotheses about how the consumers from East Germany might be expected to differ. The results support all of the hypotheses about West German consumers, and East German consumers were found to differ in most of the predicted ways from the West Germans. The article concludes with a discussion of the research and consumer policy implications of the findings.