Friday, June 15, 2012

Deceptive advertising busted by the iPhone

Ski resorts self-report 23 percent more snowfall on weekends. Resorts that plausibly reap greater benefits from exaggerating do it more. We find little evidence that competition restrains or encourages exaggeration. Near the end of our sample period, a new iPhone application feature makes it easier for skiers share information on ski conditions in real time. Exaggeration falls sharply, especially at resorts with better iPhone reception.
--Jonathan Zinman and Eric Zitzewitz, "Wintertime for deceptive advertising?," on another way the iPhone has made the world a better place