Cooperative and predatory advertising: effects on oligopoly advertising investment.

From: Atlantic Economic Journal | Date: June 1, 1993| Author: | Copyright information

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 ...

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