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Interoperability between ad-financed platforms with endogenous multi-homing

Bourreau, Marc; Raizonville, Adrien; Thébaudin, Guillaume - 2023

Platform interoperability is considered a powerful tool to promote competition in digital markets when network effects are at play. We study the effect of interoperability on competition between two ad-financed platforms, allowing for endogenous multi-homing of consumers. When the platforms are...

Persistent link: https://www.econbiz.de/10014247369

Injunctions against false advertising

Baumann, Florian; Rasch, Alexander - 2019

false advertising by a firm in duopolistic competition where consumers can be distinguished according to whether or not they … form rational beliefs about the trustworthiness of advertising claims. We compare private and public law enforcement in the … form of the demand for injunctions against false advertising. From a welfare perspective, we show that it can be optimal …

Persistent link: https://www.econbiz.de/10012012317

With a little help from my enemy: comparative advertising as a signal of quality

BARIGOZZI, Francesca; GARELLA, Paolo Giorgio; PEITZ, Martin - Dipartimento di Economia, Management e Metodi … - 2008

We extend the theory of advertising as a quality signal, using a model where an entrant can choose to advertise by … comparing its product to that of an established incumbent. Comparative advertising, comparing quality of one’s own product to … misleading. We show that comparative advertising can be a signal in instances where generic advertising is not viable. …

Persistent link: https://www.econbiz.de/10005007232

Competition and commercial media bias

Blasco, Andrea; Sobbrio, Francesco - 2011

contents upon which advertisers are likely to share similar preferences; ii) In advertising industries characterized by high …

Persistent link: https://www.econbiz.de/10011737150

Deceptive advertising with rational buyers

Piccolo, Salvatore; Tedeschi, Piero; Ursino, Giovanni - 2015

buyer into a bad purchase through (costly) deceptive advertising. We characterize the equilibrium set of the game and argue …

Persistent link: https://www.econbiz.de/10011774615

Worker Training and Quality Competition

Bilanakosa, Christos; Heywood, John S.; Sessions, John; … - 2017

We uniquely examine the relationship between firm-sponsored training and product quality competition. Using an oligopolistic model of both price and quality competition, we show that an increase in the sensitivity of demand to product quality will strengthen firms’ incentives to train their...

Persistent link: https://www.econbiz.de/10011741902

Oligopolistic competition in price and quality

Dubovik, Andrei; Janssen, Maarten C. W. - 2008

We consider an oligopolistic market where firms compete in price and quality and where consumers are heterogeneous in knowledge: some consumers know both the prices and quality of the products offered, some know only the prices and some know neither. We show that two types of signalling...

Persistent link: https://www.econbiz.de/10011376636

Competitive market segmentation

Sticher, Silvio - 2013

In a two-firm model where each firm sells a high-quality and a low-quality version of a product, customers differ with respect to their brand preferences and their attitudes towards quality. We show that the standard result of quality-independent markups crucially depends on the assumption that...

Persistent link: https://www.econbiz.de/10010227304

Salience, competition, and decoy goods

Herweg, Fabian; Müller, Daniel; Weinschenk, Philipp - 2016

We consider a brand manufacturer who can offer, next to its high-quality product, also a decoy good and faces competition by a competitive fringe that produces low quality. We show that the brand manufacturer optimally provides a decoy good to boost the demand for its main product if consumers'...

Persistent link: https://www.econbiz.de/10011557863

The market for melons : Cournot competition with unobserval qualities

Argenton, Cédric (contributor) - 2006 - Rev. version December 2005

Two firms produce different qualities at possibly different, constant marginal costs. They compete in quantities on a market where buyers only observe the average quality supplied. The model is a generalization of the standard Cournot duopoly, which corresponds to the special case where the two...

Persistent link: https://www.econbiz.de/10003254850

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