A Note on Socially Insufficient Advertising in Tirole’s Duopoly Model

Anthony Creane

MPRA Paper from University Library of Munich, Germany

Abstract: In his textbook Tirole (1988, pp. 291-294) presents a model of advertising with Hotelling duopolists. It has been inferred (e.g., Bagwell, 2007) that in the competitive equilibrium derived, there can be socially too little advertising. It is shown that given the assumptions in Tirole (1988), there cannot be socially too little advertising for this equilibrium.

Keywords: informative advertising; existence; welfare (search for similar items in EconPapers)
JEL-codes: D83 L13 (search for similar items in EconPapers)
Date: 2019-06
New Economics Papers: this item is included in nep-com, nep-gth and nep-ind
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https://mpra.ub.uni-muenchen.de/97616/1/MPRA_paper_97616.pdf revised version (application/pdf)

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