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Yohei Tenryu and Keita Kamei
 
''Dynamic voluntary advertising and vertical product quality''
( 2013, Vol. 33 No.1 )
 
 
We investigate the dynamic relationship between advertising and product quality under duopolistic competition. By using a simplified vertical product differentiation model with voluntary advertising, we show that the firm with larger market share has a larger advertising share and that there is a positive relationship between the difference in product quality and the number of customers in an industry.
 
 
Keywords: Advertising, product quality, differential games, duopoly.
 
Manuscript Received : Jan 12 2013 Manuscript Accepted : Mar 04 2013

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