price collusion in duopoly markets. Two environments are tested, in which the size of the spillover between advertising … expenditures is varied. The results show that the competitiveness of advertising and prices are significantly higher when the … advertising spillover is higher than the price spillover than when advertising spillover is lower than the price spillover. In the …

differentiation may be achieved through product related choices, advertising levels may constitute another key mechanism. In this … paper, we examine under what conditions firms will elect to differentiate through product quality vs. advertising intensity … about through advertising, and choose the alternative that maximizes their utility. Firms select product quality in a first …