de Frutos, Maria-Angeles; Ornaghi, Carmine; Siotis, Georges - In: Journal of Health Economics 32 (2013) 1, pp. 268-285
We present a Hotelling model of price and advertising competition between prescription drugs that differ in quality/side effects. Promotional effort results in the endogenous formation of two consumer groups: brand loyal and non-brand loyal ones. We show that advertising intensities are...
