Dynamic advertising under vertical product differentiation

Luca, Colombo and Lambertini, L 2003, Dynamic advertising under vertical product differentiation, Journal of optimization theory and applications, vol. 119, no. 2, pp. 261-280.

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Title Dynamic advertising under vertical product differentiation
Author(s) Luca, Colombo
Lambertini, L
Journal name Journal of optimization theory and applications
Volume number 119
Issue number 2
Start page 261
End page 280
Total pages 19
Publisher Springer
Place of publication New York, N.Y.
Publication date 2003-11
ISSN 0022-3239
1573-2878
Keyword(s) advertising
product quality
differential games
optimal control
Summary We investigate a dynamic advertising model where product quality is endogenous. In the differential game between single-product firms, there exists a parameter range where the low-quality firm uses a more efficient advertising technology and earns higher profits than the rival. Moreover, we show that equilibrium qualities are the same under duopoly, multiproduct monopoly, and social planning, the only distortion being concerned with the output levels.
Language eng
Field of Research 150504 Marketing Measurement
HERDC Research category C1.1 Refereed article in a scholarly journal
Copyright notice ©2003, Plenum Publishing Corporation
Persistent URL http://hdl.handle.net/10536/DRO/DU:30024396

Document type: Journal Article
Collection: School of Accounting, Economics and Finance
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