Advertising and Contestable Market : Evidence from the Greek Mobile Sector

Advertising expenditure is a basic channel in the transmission mechanism of a firm's diversification product, which runs in a highly concentrated sector, as is the mobile telecommunication market in Greece. This strategy of marketing aims to develop a comparative advantage for the firm ensuring maintenance and increase of the market share. The empirical investigation between sales and advertising expenditure provides evidence that advertising expenditure plays a substantial role on the redistribution of the market shares among the main firms of the Greek mobile sector