This paper presents a linear-city model where firms compete on price and levels of advertising, which affects the … perceived utility of products. More cost efficient firms extend their advantage with more advertising, which leads to higher … profits, if advertising is sufficiently effective. We test this relationship using a unique S&P sample. Our empirical results …

This paper presents a linear-city model where firms compete on price and levels of advertising, which affects the … perceived utility of products. More cost efficient firms extend their advantage with more advertising, which leads to higher … profits, if advertising is sufficiently effective. We test this relationship using a unique S&P sample. Our empirical results …

-wide framework to analyse the effects of advertising on consumption; novel approaches to forecasting consumption patterns; and new …