Skip to Main content Skip to Navigation
Journal articles

Advertising Spillovers and Market Structure

Abstract : In this paper we characterize the equilibrium of a duopoly market which exhibits advertising spillovers. Interestingly, we prove that the relevant distinction is not between pure positive and pure negative advertising spillovers but between strong positive spillovers and weakly positive or negative spillovers. Moreover, we prove that, depending on the extent of advertising spillovers and the agency advertising cost, we may obtain at equilibrium either two active advertisers or only one advertiser that may even push its rival out of the product market. Thus advertising and the spillovers induced from it may be a source of a monopoly situation, hence an asymmetric outcome may result from an initially symmetric situation.
Complete list of metadata
Contributor : Elisabeth Lhuillier Connect in order to contact the contributor
Submitted on : Thursday, February 9, 2017 - 1:42:12 PM
Last modification on : Tuesday, February 8, 2022 - 10:53:45 AM


  • HAL Id : hal-01463118, version 1



Nada Ben Elhadj, Rim Lahmandi-Ayed, Didier Laussel. Advertising Spillovers and Market Structure. Recherches économiques de Louvain, 2014, 80 (3), pp.51--98. ⟨hal-01463118⟩



Record views