Hattori, Keisuke; Higashida, Keisaku - School of Economics, Kwansei Gakuin University - 2011
In this paper, we build a model of strategic misleading advertising in duopolistic markets with horizontal product … differentiation and advertising externality between firms. We investigate the effects of regulating misinformation on market … competition, behavior of firms, and social welfare. We show that the degree of advertising externality and the magnitude of …