MANTOVANI, Andrea; MION, Giordano - Center for Operations Research and Econometrics (CORE), … - 2003
In this paper we consider a two-stage duopoly game where firms first decide whether to invest in advertising and then … compete in prices. Advertising has two effects: a market enlargement for both firms and a predatory gain for the investing … investment in advertising and that strong product substitutability may induce a coordination problem. …