Strategic Targeted Advertising and Market Fragmentation

Article OPEN
Lola Esteban ; Jose M. Hernandez (2007)
  • Journal: Economics Bulletin, volume 12, issue 10, pages 1-12
  • Subject: discount coupons.
    • jel: jel:L1

This paper proves that oligopolistic price competition with both targeted advertising and targeted prices can lead to a permanent fragmentation of the market into a local monopoly. However, compared to mass advertising, targeting increases social welfare and turns out t... View more
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