Dynamic Voluntary Advertising and Vertical Product Quality

We investigate the dynamic relationship between advertising and product quality under duopolistic competition. By using a simplified vertical product differentiation model with voluntary advertising, we show that the firm with larger market share has a larger advertising share and that there is a positive relationship between the difference in product quality and the number of customers in an industry.

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Year of publication:	2012-12-01
Authors:	Tenryu, Yohei ; Kamei, Keita
Institutions:	Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München
Subject:	Advertising \| product quality \| differential games \| duopoly

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Extent:	application/pdf
Series:	MPRA Paper.
Type of publication:	Book / Working Paper
Classification:	L13 - Oligopoly and Other Imperfect Markets ; C72 - Noncooperative Games
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011110328