000077146 001__ 77146
000077146 005__ 20200117221615.0
000077146 0248_ $$2sideral$$a109313
000077146 037__ $$aART-2018-109313
000077146 041__ $$aeng
000077146 100__ $$0(orcid)0000-0003-4822-7987$$aEsteban, L.$$uUniversidad de Zaragoza
000077146 245__ $$aMass versus Direct Advertising and Product Quality
000077146 260__ $$c2018
000077146 5060_ $$aAccess copy available to the general public$$fUnrestricted
000077146 5203_ $$aThis paper analyzes how the use of mass vs. direct advertising can affect the pattern of price and quality competition in a market where two firms compete with vertically differentiated products. We show that, compared to the case where sellers employ only mass advertising, the use of database advertising based on historical sales records improves the competitive position of the low-quality firm, which achieves a larger market share and can obtain higher profits. As a result, the high-quality firm lowers the supply of quality, which decreases the degree of product differentiation in the market and triggers strong price competition, thus decreasing its profits and increasing consumer surplus. Finally, we show that, although database advertising is more cost-efficient than mass advertising, the market distortion in the provision of quality implies that the use of direct advertising can yield a welfare loss.
000077146 540__ $$9info:eu-repo/semantics/openAccess$$aby$$uhttp://creativecommons.org/licenses/by/3.0/es/
000077146 592__ $$a0.109$$b2018
000077146 593__ $$aEconomics and Econometrics$$c2018$$dQ4
000077146 655_4 $$ainfo:eu-repo/semantics/article$$vinfo:eu-repo/semantics/publishedVersion
000077146 700__ $$0(orcid)0000-0003-1292-6778$$aHernández, J.M.$$uUniversidad de Zaragoza
000077146 7102_ $$14000$$2415$$aUniversidad de Zaragoza$$bDpto. Análisis Económico$$cÁrea Fund. Análisis Económico
000077146 773__ $$g29, 3 (2018), 1-22$$pJ. econ. theory econom.$$tJournal of economic theory and econometrics$$x1229-2893
000077146 8564_ $$s205687$$uhttps://zaguan.unizar.es/record/77146/files/texto_completo.pdf$$yVersión publicada
000077146 8564_ $$s49812$$uhttps://zaguan.unizar.es/record/77146/files/texto_completo.jpg?subformat=icon$$xicon$$yVersión publicada
000077146 909CO $$ooai:zaguan.unizar.es:77146$$particulos$$pdriver
000077146 951__ $$a2020-01-17-21:50:39
000077146 980__ $$aARTICLE