On advertising durability and product durability
This paper uses a simple two-period model to examine the behaviour of a monopolist who produces a durable good and engages in advertising that is also somewhat durable. It is found that changes in product durability and advertising durability have opposite effects on profit-maximizing output and advertising. Policy implications for antitrust and health regulation are discussed.
Volume (Year): 14 (2007)
Issue (Month): 1 ()
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- Levine, David, 1985. "A Simple Durable Goods Model," The Quarterly Journal of Economics, MIT Press, vol. 100(3), pages 775-88, August.
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