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| Yohei Tenryu and Keita Kamei |
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| ''Dynamic voluntary advertising and vertical product quality'' |
| ( 2013, Vol. 33 No.1 ) |
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| 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. |
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| Keywords: Advertising, product quality, differential games, duopoly. |
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| Manuscript Received : Jan 12 2013 | | Manuscript Accepted : Mar 04 2013 |
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