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Pastine, Ivan and Pastine, Tuvana (2011) Coordination in Markets with Consumption Externalities: The Role of Advertising and Product Quality. The Manchester School, 79 (1). pp. 45-62.
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Abstract
In this paper we study advertising in markets with positive consumption
externalities. In such markets, we show that firms may engage in adver-
tising competition to coordinate consumer expectations on their own
brand as long as they produce goods of similar quality. The firm with the
lower-quality product has a greater incentive to advertise. Hence in equi-
librium, the lower-quality product will often be more popular
| Item Type: | Article |
|---|---|
| Keywords: | Markets; Consumption Externalities; Advertising; Product Quality; |
| Academic Unit: | Faculty of Social Sciences > Economics, Finance and Accounting |
| Item ID: | 5014 |
| Identification Number: | 0.1111/j.1467-9957.2010.02186.x |
| Depositing User: | Tuvana Pastine |
| Date Deposited: | 11 Jun 2014 13:40 |
| Journal or Publication Title: | The Manchester School |
| Publisher: | Blackwell Publishing Ltd |
| Refereed: | Yes |
| Related URLs: | |
| URI: | https://mural.maynoothuniversity.ie/id/eprint/5014 |
| Use Licence: | This item is available under a Creative Commons Attribution Non Commercial Share Alike Licence (CC BY-NC-SA). Details of this licence are available here |
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