downgrades quality whereas the seller sometimes upgrades it. Our model of targeting with endogenous product quality provides some … new insights into the way the transition from mass to specialized advertising can affect market outcomes. Quality …

Economists have emphasized the role of dissipative advertising and price as signals of quality. Most works, however …, limit the number of types to two options: high and low quality. Yet, production costs and quality both result from R … quality and marginal cost are both subject to chance. In a static framework (no repeat purchases and no informed consumers …

conformity. In equilibrium, both quality and cost leaders choose higher advertising intensities and charge higher prices than …

power and in quality to stimulate content consumption. The profit-maximizing tariff is zero if productive data are highly …

downgrades quality whereas the seller sometimes upgrades it. Our model of targeting with endogenous product quality provides some … new insights into the way the transition from mass to specialized advertising can affect market outcomes. Quality …

their matches: there is no role for comparative advertising. If qualities are sufficiently dissimilar, the high-quality one … will not want to disclose match information. If legal, the low-quality firm rival would like to advertise match information … consume the low quality product: this effect can dominate the benefits from improved consumer information and reduce social …

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 …