In three identical laboratory markets, sellers possess products whose quality is both exogenously and endogenously determined. Buyers can observe products' quality only in the last session of each experiment. It is also assumed an uneven distribution of income among buyers. We study whether a...

Theoretical models of multidimensional product differentiation predict that in duopoly firms differentiate maximally along one dimension and minimally along the other dimensions. We experimentally reproduce a market in which firms can differentiate their products along two horizontal dimensions....

The literature on product differentiation predicts that firms are likely to differentiate their products in order to relax price competition. We tested this theoretical result in a laboratory setting, by organizing twenty-four markets where products were offered with different quality levels. We...

I derive the optimal ratio between advertising and subscriptions revenues when a monopolist publisher maximizes its profits with respect to advertising space and subscription price. If consumers are more adverse towards advertising than towards price, the ratio is higher

We analyse the effects of the advertising ban on French public television, which came into effect on the 5th of January 2009. The ban forbids commercial advertising on public TV in the time slot 20.00-6.00. By using a difference-in-difference approach we show that advertising which was...

We derive the optimal ratio between advertising and sales income when a publisher maximises its profits with respect to advertising space and product price. If consumers are more adverse towards advertising than towards price, the ratio is higher. The same theoretical framework is used to...