In this article, we consider misleading advertising and in particular the advertising of a false regular price when a bargain price is announced. To take into account the strategic interactions between firms and the consumers' rationality when confronted with advertising, we develop a duopoly...

[eng] Spatial competition and distortuns of localization. Under incomplete information. . We study a model of spatial duopoly competition with sequential entry on a segment in the choice of locations (stage 1 of the game) and then simultaneous competition in delivery prices (stage 2). The second...

The objectif of this paper is to give a microeconomic foundation to misleading advertising in order to derive a method to evaluate its social costs both in terms of efficiency and in terms of distribution. We develop first the approach leading to the concept of demand based on information biased...

The use of false regular prices is a major case of misleading advertisement in what seems to be quite competitive markets. The authors construct a competitive model with rational expectations in which such misleading advertising emerges. They assume that there is competition locally, but that...