This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Strategic Advertising for Entry Deterrence Purposes

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Paolo Coccorese () (CELPE and DISES, University of Salerno)

Additional information is available for the following registered author(s):

Abstract

This paper evaluates the possible effects of advertising on conditions of entry in a market with one incumbent and one potential entrant. Through a game-theoretic framework, it is shown that the use of pre-entry advertising expenditures (which are supposed to exhibit diminishing returns) may discourage entry even when firms behave rationally and face the same conditions of cost and demand.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.celpe.unisa.it/DP/dp61.pdf
Our checks indicate that this address may not be valid because: 404 Not Found. If this is indeed the case, please notify (Anna D'Acunzo)
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by CELPE (Centre of Labour Economics and Economic Policy), University of Salerno, Italy in its series CELPE Discussion Papers with number 61.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length:
Date of creation: Mar 2001
Date of revision:
Handle: RePEc:sal:celpdp:61

Contact details of provider:
Postal: Via Ponte don Mellillo, 84084 Fisciano (Sa)
Phone: +39 089 962152 -
Fax: +39 089 962049
Email:
Web page: http://www.celpe.unisa.it/
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Anna D'Acunzo).

Related research
Keywords: market structure; advertising;

Find related papers by JEL classification:
L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Bulow, Jeremy I & Geanakoplos, John D & Klemperer, Paul D, 1985. "Multimarket Oligopoly: Strategic Substitutes and Complements," Journal of Political Economy, University of Chicago Press, vol. 93(3), pages 488-511, June. [Downloadable!] (restricted)
  2. Milgrom, Paul & Roberts, John, 1982. "Limit Pricing and Entry under Incomplete Information: An Equilibrium Analysis," Econometrica, Econometric Society, vol. 50(2), pages 443-59, March. [Downloadable!] (restricted)
  3. Franco Modigliani, 1958. "New Developments on the Oligopoly Front," Journal of Political Economy, University of Chicago Press, vol. 66, pages 215. [Downloadable!] (restricted)
  4. Salop, Steven C, 1979. "Strategic Entry Deterrence," American Economic Review, American Economic Association, vol. 69(2), pages 335-38, May. [Downloadable!] (restricted)
  5. Rizzo, John A & Zeckhauser, Richard J, 1990. "Advertising and Entry: The Case of Physician Services," Journal of Political Economy, University of Chicago Press, vol. 98(3), pages 476-500, June. [Downloadable!] (restricted)
  6. Cubbin, John S, 1981. "Advertising and the Theory of Entry Barriers," Economica, London School of Economics and Political Science, vol. 48(191), pages 289-98, August. [Downloadable!] (restricted)
  7. A. Michael Spence, 1977. "Entry, Capacity, Investment and Oligopolistic Pricing," Bell Journal of Economics, The RAND Corporation, vol. 8(2), pages 534-544, Autumn. [Downloadable!] (restricted)
  8. Spence, A Michael, 1980. "Notes on Advertising, Economies of Scale, and Entry Barriers," The Quarterly Journal of Economics, MIT Press, vol. 95(3), pages 493-507, November.
  9. Dixit, Avinash, 1980. "The Role of Investment in Entry-Deterrence," Economic Journal, Royal Economic Society, vol. 90(357), pages 95-106, March. [Downloadable!] (restricted)
    Other versions:
  10. Comanor, William S & Wilson, Thomas A, 1979. "The Effect of Advertising on Competition: A Survey," Journal of Economic Literature, American Economic Association, vol. 17(2), pages 453-76, June. [Downloadable!] (restricted)
  11. Massimo Motta, 1996. "Advertising Bans," Economics Working Papers 205, Department of Economics and Business, Universitat Pompeu Fabra, revised Jan 1997. [Downloadable!]
    Other versions:
  12. Schmalensee, Richard, 1976. "Advertising and Profitability: Further Implications of the Null Hypothesis," Journal of Industrial Economics, Blackwell Publishing, vol. 25(1), pages 45-54, September. [Downloadable!] (restricted)
  13. Cubbin, John S & Domberger, Simon, 1988. "Advertising and Post-entry Oligopoly Behaviour," Journal of Industrial Economics, Blackwell Publishing, vol. 37(2), pages 123-40, December. [Downloadable!] (restricted)
  14. Nirvikar Singh & Xavier Vives, 1984. "Price and Quantity Competition in a Differentiated Duopoly," RAND Journal of Economics, The RAND Corporation, vol. 15(4), pages 546-554, Winter. [Downloadable!] (restricted)
  15. Kreps, David M. & Wilson, Robert, 1982. "Reputation and imperfect information," Journal of Economic Theory, Elsevier, vol. 27(2), pages 253-279, August. [Downloadable!] (restricted)
    Other versions:
  16. Vernon, John M & Nourse, Robert E M, 1973. "Profit Rates and Market Structure of Advertising Intensive Firms," Journal of Industrial Economics, Blackwell Publishing, vol. 22(1), pages 1-20, September. [Downloadable!] (restricted)
  17. Boyer, Kenneth D, 1974. "Informative and Goodwill Advertising," The Review of Economics and Statistics, MIT Press, vol. 56(4), pages 541-48, November. [Downloadable!] (restricted)
  18. Rosenbaum, David I & Lamort, Fabian, 1992. "Entry, Barriers, Exit, and Sunk Costs: An Analysis," Applied Economics, Taylor and Francis Journals, vol. 24(3), pages 297-304, March.
  19. Fudenberg, Drew & Tirole, Jean, 1984. "The Fat-Cat Effect, the Puppy-Dog Ploy, and the Lean and Hungry Look," American Economic Review, American Economic Association, vol. 74(2), pages 361-66, May. [Downloadable!] (restricted)
  20. Schmalensee, Richard, 1983. "Advertising and Entry Deterrence: An Exploratory Model," Journal of Political Economy, University of Chicago Press, vol. 91(4), pages 636-53, August. [Downloadable!] (restricted)
Full references

Statistics
Access and download statistics

Did you know? The RePEc project started in 1997. Its precursor, NetEc, dates back to 1993.

This page was last updated on 2009-11-26.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.