Arbeitspapier

Dynamic Advertising under Vertical Product Differentiation

We investigate a dynamic advertising model where product quality is endogenous. In the differential game between single-product firms, there exists a parameter range where the low-quality firm uses a more efficient advertising technology and earns higher profits than the rival. Moreover, we show that equilibrium qualities are the same under duopoly, multiproduct monopoly and social planning, the only distortion being concerned with output levels.

Language
Englisch

Bibliographic citation
Series: Quaderni - Working Paper DSE ; No. 456

Classification
Wirtschaft

Event
Geistige Schöpfung
(who)
Colombo, Luca
Lambertini, Luca
Event
Veröffentlichung
(who)
Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)
(where)
Bologna
(when)
2002

DOI
doi:10.6092/unibo/amsacta/4839
Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Colombo, Luca
  • Lambertini, Luca
  • Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)

Time of origin

  • 2002

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