Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments February 7, 2023 erstellt
Description:
We study the price competition between two firms that have to advertise to reach consumers. Advertising can be either informative or persuasive (branding); the latter increases consumers' willingness to pay. When both firms advertise informatively, the pricing is in mixed strategies, and the profits are non-monotone in advertising costs. When the firms engage in different advertising methods, the pricing is in pure strategies, and the firm with persuasive advertising may choose a price that is higher than the monopoly price