The impact of advertising in a duopoly model
نویسندگان
چکیده
We investigate the impact of advertising in a simple static differentiated duopoly model. In order to do that, we compare the situation where the firms compete with two strategic variables – i.e. the prices and the advertising expenditures – with the situation where the firms only compete in prices and do not advertise at all. We characterize in terms of the model parameters the circumstances in which the profits, prices and/or outputs of each firm are greater (smaller) in the Nash equilibrium with advertising than in the Nash equilibrium without advertising.
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تاریخ انتشار 1999