This paper studies advertising in vertically differentiated product markets with positive consumption externalities. In … consumers. In such markets, we show that firms will engage in advertising competition in order to convince consumers of their … popularity only as long as they produce goods of similar quality. The firm with the lower quality product will have a greater …

quality information, price information, and horizontal match information. Equilibrium is unique whenever advertising is …We extend the persuasion game to bring it squarely into the economics of advertising. We model advertising as exciting … consumer interest into learning more about the product, and determine a firm's equilibrium choice of advertising content over …

providers of contents incentives to invest in higher quality and, as a result, force competitors to reduce their prices …

perfection has been achieved the individual will aim for higher quality since the effort is more likely to be worthwhile. Because … standards may nonetheless decline. This mechanism is captured in an oligopoly model, where the failure rate and the quality are …

This paper examines incentives for exclusive distribution of content in the presence of advertising. A monopoly seller …-maximising choice, even when distributors also sell advertising airtime. When distributors are purely advertising-funded, however, non …-exclusive contracting may instead be preferred. Advertising revenues accruing directly to the content provider may also generate a …

We study the relationship between competition and quality within a spatial competition framework where firms compete in … prices and quality. We generalise existing literature on spatial price-quality competition along several dimensions …, including utility functions that are non-linear in income and cost functions that are non-separable in output and quality. Our …

on quality, price and welfare. The merging firms always reduce quality. They also increase prices if demand … responsiveness to quality is sufficiently low. The non-merging firm, on the other hand, always responds by increasing both quality … and prices. Overall, a merger leads to higher average prices and quality in the market. The welfare implications of a …

In many markets governments set minimum quality standards while some sellers choose to compete on the basis of quality … by exceeding them. Such ‘high-quality’ strategies often win public acclaim, especially when ‘environmental friendliness … product differentiation. A minimum quality standard leads both the high-quality and the low-quality firm to increase product …