Dissipative advertising signals quality: Static model with a continuum of types

Advertising and price have been shown to signal product quality. Most works limit the number of types to high and low quality. I characterize the optimal separating marketing strategy when both quality and marginal cost are uncertain and continuous variables.

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Year of publication:	2012
Authors:	Linnemer, Laurent
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 114.2012, 2, p. 150-153
Publisher:	Elsevier
Subject:	Quality \| Signaling \| Dissipative advertising

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Type of publication:	Article
Classification:	L12 - Monopoly; Monopolization Strategies ; L15 - Information and Product Quality; Standardization and Compatibility ; M37 - Advertising
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010572200