KIM, Chongmin and Hyukseung SHIN. A Note on Strategic Advertising in a Duopoly. 2006.
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Basic information
Original name A Note on Strategic Advertising in a Duopoly
Name in Czech Poznámka k strategické reklamě v případě duopolu
Authors KIM, Chongmin and Hyukseung SHIN.
Edition 2006.
Other information
Original language English
Type of outcome Article in a journal
Field of Study 10101 Pure mathematics
Confidentiality degree is not subject to a state or trade secret
Organization unit Faculty of Science
Changed by Changed by: prof. RNDr. Jan Paseka, CSc., učo 1197. Changed: 22. 6. 2012 15:11.
We analyze the effects of strategic advertising when a firm’s advertising exhibits externalities on its competitor’s prfits either negatively or positively. We show that it is possible for both firms to increase profits by engaging in advertising even though advertising steals the market from the other. We show that there may occur too little advertising from society’s perspective even when advertising increases prices. This contrasts with the existing literature that mainly pay attention to the effect of advertising on market price in case of evaluating the social desirability of advertising.
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