In this paper we demonstrate that the positive effects of comparative advertising are significantly diluted when a compared-to brand retaliates. Retaliation introduces sequencing in advertisements. We therefore evaluate sequelized advertisements (both comparative and noncomparative) alongside...

In this chapter we model localized competition between firms when consumers exhibit brand lock-in or loyalty. We derive the symmetric equilibrium mixed strategy price distribution under two alternative models, and compare them to symmetric equilibrium strategies under non-localized competition....