Dynamic Voluntary Advertising and Vertical Product Quality
We investigate the dynamic relationship between advertising and product quality under duopolistic competition. By using a simplified vertical product differentiation model with voluntary advertising, we show that the firm with larger market share has a larger advertising share and that there is a positive relationship between the difference in product quality and the number of customers in an industry.
|Date of creation:||01 Dec 2012|
|Date of revision:|
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Web page: https://mpra.ub.uni-muenchen.de
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3-88-14, Pennsylvania State - Department of Economics.
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