publication . Article . 1999

Strategic Underinvestment in Informative Advertising: The Cases of Substitutes and Complements

Marcel Boyer; Michel Moreaux;
Open Access
  • Published: 01 Jan 1999 Journal: The Canadian Journal of Economics / Revue canadienne d'Economique, volume 32, page 654 (issn: 0008-4085, Copyright policy)
  • Publisher: JSTOR
Abstract
The authors analyze the strategic pricing and informative advertising decisions made by firms in duopolistic contexts. They show that, whether the products are substitutes or complements, there exist strategic settings in which firms keep potential consumers uninformed about their products even if the advertising cost is zero.
Subjects
free text keywords: Economics and Econometrics, Microeconomics, Strategic pricing, Oligopoly, Economics, Market structure, Informative advertising, jel:D43, jel:L13, jel:M37
Any information missing or wrong?Report an Issue