Emons, Winand; Fluet, Claude - In: International Journal of Industrial Organization 30 (2012) 4, pp. 352-360
Two firms produce a good with a horizontal and a vertical characteristic called quality. The difference in the … unobservable quality levels determines how the firms share the market. We consider two scenarios: In the first one, firms disclose … quality; in the second one, they send costly signals thereof. Under non-comparative advertising a firm advertises its own …