Product Quality, Advertising Intensity and Market Size
Bing Han () and
Hayley Chouinard ()
No 2013-12, Working Papers from School of Economic Sciences, Washington State University
We develop a model of product differentiation in which firms strategically compete in product quality and advertising intensity. Consumers face a trade-off between higher quality goods and price. Increased competition may lead to higher or lower quality products. Consumers always benefit from more competition as a reduction in price offsets reduced quality.
Keywords: advertising intensity; consumer surplus; market size; product quality (search for similar items in EconPapers)
JEL-codes: L11 L15 L22 (search for similar items in EconPapers)
Pages: 12 pages
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http://faculty.ses.wsu.edu/WorkingPapers/chouinard/wp2013-12.pdf First version, 2013 (application/pdf)
Journal Article: Product quality, advertising intensity and market size (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:wsu:wpaper:chouinard-6
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