We study a simple model in which two vertically differentiated firms compete in prices and mass advertising on an … advertising cost and quality differential (relative advertising cost), either there is no equilibrium in pure strategies or there … advertising cost goes to infinity, prices become equal and the advertising intensities converge to zero as well as the profits …

, advertising can serve as a signal of product quality for experience goods. As such, advertising might help skilled new freelancers … explores the role of advertising in online labor markets using transactional data from a major platform. While indeed newer …. Taken together, my results contrast the hypotheses derived from signaling models of advertising. …