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 …

We extend the theory of advertising as a quality signal, using a model where an entrant can choose to advertise by … comparing its product to that of an established incumbent. Comparative advertising, comparing quality of one’s own product to …

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 …

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

According to the quality signaling theory, firms are motivated to invest more advertising in high-quality products … method to measure consumer willingness-to-pay for a fictitious cell phone market of varying quality before and after … advertising. The results show that advertising effectively influences consumer awareness of perceived quality and enhance their …

Advertising and price have been shown to signal product quality. Most works limit the number of types to high and low … quality. I characterize the optimal separating marketing strategy when both quality and marginal cost are uncertain and …

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 …

consumers can seldom directly observe a firm's environmental quality (a problem not easily solved through eco … information may bring about the paradoxical result of discouraging differentiation efforts. …

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