. Information can come through two different channels: advertising and sequential consumer search. We arrive at the following … results. First, there is no monotone relationship between prices and the degree of advertising. Second, advertising and search … are “substitutes” for a large range of parameters. Third, when the cost of either search or advertising vanishes, the …

This paper analyses the competitive effects of informative advertising. The seminal work by Grossman and Shapiro (1984 …) show that informative advertising results in lower prices and that firms may benefit from advertising restrictions. A …

This paper studies a novel model of persuasive advertising over differentiated products in a duopoly. Each firm tries … consumers are naive or the advertising technology is effective, there is a Perfect Equilibrium, where firms earn a higher profit … than by not advertising because they can further differentiate their products. We also show that duopolists regard their …