Eaton, Curtis B.; MacDonald, Ian A.; Meriluoto, Laura - Department of Economics and Finance, College of … - 2008
We examine a two stage duopoly game in which firms advertise their existence to consumers in stage 1 and compete in prices in stage 2. Whenever the advertising technology generates positive overlap in customer bases the equilib- rium for the stage 1 game is asymmetric in that one firm chooses to...