Strategic Underinvestment in Informative Advertising: the Cases of Subsitutes and Complements.

We analyze the strategic pricing and informative advertising decisions made by firms in duopolistic contexts. We show that whether the products are substitutes or complements, these exist strategic settings in which firms keep potential consumers uninformed about their products even if advertising cost is zero.

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Year of publication:	1998
Authors:	Boyer, M. ; Moreaux, M.
Institutions:	Groupe de Recherche en Économie Mathématique et Quantitative (GREMAQ), Toulouse School of Economics (TSE)
Subject:	ADVERTISING \| OLIGOPOLIES \| MARKET STRUCTURE

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Series:	Toulouse - GREMAQ.
Type of publication:	Book / Working Paper
Notes:	23 pages
Classification:	D43 - Oligopoly and Other Forms of Market Imperfection ; L13 - Oligopoly and Other Imperfect Markets ; M37 - Advertising
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005780437