Ben Elhadj-Ben Brahim, Nada; Lahmandi-Ayed, Rim; … - In: International Journal of Industrial Organization 29 (2011) 6, pp. 678-689
In this paper, we study a simple model in which two horizontally differentiated firms compete in prices and targeted advertising on an initially uninformed market. First, the Nash equilibrium is fully characterized. We prove that when the advertising cost is low, firms target only their...