Cooperative and predatory advertising: Effects on oligopoly advertising investment
Document Type
Article
Publication Date
6-1-1993
Abstract
An oligopolist's advertising behavior depends upon the externalities generated. Negative externalities occur when the firm's advertising gains in sales are a result of a loss to the rest of the industry. On the other hand, positive externalities may result because advertising by any single firm may increase that firm's sales while at the same time increasing sales in the rest of the industry. In the literature these types of externalities are referred to as "predatory advertising" and "cooperative advertising," respectively. Market shares are redistributed when advertising is purely predatory, and advertising is a public good when advertising is purely cooperative. The effect of advertising externalities on the firm's incentive to advertise is investigated in this paper. © 1993 Atlantic Economic Society.
Recommended Citation
Chen, Yunkai; Roayaei, A. J.; and Seldon, Barry J., "Cooperative and predatory advertising: Effects on oligopoly advertising investment" (1993). College of Health, Science, and Technology. 183.
https://digitalcommons.uncfsu.edu/college_health_science_technology/183