Esteban, Lola; Hernández, José M. - In: SERIEs - Journal of the Spanish Economic Association 2 (2011) 2, pp. 255-282
particular, we show that (1) compared to uniform advertising, targeting leads both firms to always charge higher prices, (2) the … simultaneous game of pricing and targeted advertising with two firms producing different levels of quality. We find that the … transition from uniform advertising to targeted advertising can turn a pure vertically differentiated market into a hybrid market …