competition to benefit competing firms. However, it can also lead to a procompetitive outcome where individual firms advertise to … competition such that an “advertising war” leads to a “price war.” Similar to price competition, advertising competition can …

. One would expect these ISAs to subject sellers to intense price competition that results in uniform low prices. Yet … examine the impact of ISAs on market competition. An ISA creates differentiation in the pricing strategies of ex …

consumers to pay for such a product, but also has a negative strategic effect by increasing price competition between brands …

a seemingly suboptimal practice. Our analysis shows that reward programs weaken price competition. By offering the …, firms are able to commit to weaker competition and, therefore, higher prices. When the heavy-user segment is large or not … light users are very price sensitive, firms engage in intense price competition, thus benefiting little from the loyalty of …

trace the latter result to competition and to free-riding on the information provision. Specifically, in a monopoly market …