conformity. In equilibrium, both quality and cost leaders choose higher advertising intensities and charge higher prices than …This paper analyzes persuasive advertising and pricing in oligopoly if firms sell differentiated products and consumers … that the demand-enhancing effect of persuasive advertising varies across consumers and increases in the average degree of …

Economists have emphasized the role of dissipative advertising and price as signals of quality. Most works, however …), advertising appears to be necessary together with price to signal quality. Equilibrium profits depend on cost but not on quality …, limit the number of types to two options: high and low quality. Yet, production costs and quality both result from R …

attention, thereby triggering wasteful advertising, and it may divert purchases to imported goods at an inefficient scale …. Wasteful advertising provides scope for policy intervention in the form of an advertising tax. However, the tax instrument … cannot eliminate inefficient diversion of consumer purchases to imports. Therefore, even under an optimal advertising tax …

assumptions that there is no advertising congestion and that viewers single-home. Allowing for crowding in viewer attention spans …

the effect of connecting a household to the grid and of the quality of electricity, defined as hours of daily supply. The … quality of electricity (in terms of fewer outages and more hours per day) increases non-agricultural incomes by about 28 …

We develop a theory of innovation for entry and sale into oligopoly, and show that inventions of higher quality are … entrepreneurial effort allocated to high-quality invention projects. Using data on patents granted to small firms and individuals, we … find evidence that high-quality inventions are sold under preemptive bidding competition. Asymmetric information problems …