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dc.contributor.authorEaton, B. C.en
dc.contributor.authorMacDonald, Ian A.en
dc.contributor.authorMeriluoto, L.en
dc.date.accessioned2011-03-14T23:25:08Z
dc.date.issued2008-10-15en
dc.identifier.citationEaton, C.B., MacDonald, I.A., Meriluoto, L. (2008) Existence advertising, price competition, and asymmetric market structure. University of Canterbury. 32pp.en
dc.identifier.urihttps://hdl.handle.net/10182/3319
dc.description.abstractWe examine a two stage duopoly game in which firms advertise their existence to consumers in stage 1 and compete in prices in stage 2. Whenever the advertising technology generates positive overlap in customer bases the equilibrium for the stage 1 game is asymmetric in that one firm chooses to remain small in comparison to its competitor. For a specific random advertising technology we show that one firm will always be half as large as the other. No equilibrium in pure price strategies exists in the stage 2 game and as long as there is some overlap in customer bases the mixed strategy equilibrium is far from the Bertrand equilibrium.en
dc.format.extent1-32en
dc.language.isoenen
dc.publisherUniversity of Canterbury. College of Business and Economics. Department of Economicsen
dc.relationThe original publication is available from - University of Canterbury. College of Business and Economics. Department of Economics - http://hdl.handle.net/10182/3318en
dc.relation.ispartofseriesDepartment of Financial and Business Systemsen
dc.subjectduopolyen
dc.subjectexistence advertisingen
dc.subjectprice dispersionen
dc.subjectBertrand paradoxen
dc.subjectinformationen
dc.titleExistence advertising, price competition, and asymmetric market structureen
dc.typeWorking Paper
lu.contributor.unitLincoln Universityen
lu.contributor.unitFaculty of Agribusiness and Commerceen
lu.contributor.unitDepartment of Global Value Chains and Tradeen
dc.subject.anzsrc1505 Marketingen
pubs.issueNo. 1en
pubs.notesThis working paper expands upon ideas presented in: Eaton, B.C., MacDonald, I.A. and Meriluoto, L. (2007) Price Competition when Not All Customers Know of All Firms. Christchurch, New Zealand: 48th Annual Conference New Zealand Association of Economists (NZAE), 27-29 Jun 2007.en
pubs.organisational-group/LU
pubs.organisational-group/LU/Faculty of Agribusiness and Commerce
pubs.organisational-group/LU/Faculty of Agribusiness and Commerce/GVCT
pubs.publication-statusPublisheden
pubs.publisher-urlhttp://hdl.handle.net/10182/3318en
pubs.volume10en
dc.publisher.placeLincoln, Canterburyen


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