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A closed-form model of advertising intensity and market structure

This paper develops a closed form model that relates advertising intensity and
market concentration. The shape of this relationship depends on the combative (or
market share) effect of advertising. If this effect does not exist, advertising intensity
falls as an industry fragments. If the combative effect is moderate, there is an
inverted U relationship between advertising intensity and market structure. When
the combative effect is very strong, advertising intensifies when there are more
competitors. This paper studies whether advertising aids competition or
monopolization, and if there is excessive or insufficient advertising.

Autoría: Miguel Cantillo

Consultar: https://ucr.cr/r/ptxZy