There are two basic theoretical views of how advertising affects competition. One school of thought suggests that advertising decreases competition. Kaldor (1950) argued that through economies of scale in advertising, advertising increases market concentration. Also, Bain (1956) suggested that...

This study develops an intertemporally linked market model to explore the relationships between price-cost margins, market concentration, and advertising outlay. The study used data from 48 four-digit SIC (standardized industrial classification) codes for the Food and Tobacco Processing...