Dissipative advertising signals quality: Static model with a continuum of types |
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Authors: | Laurent Linnemer |
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Affiliation: | CREST (LEI) 15, Bd Gabriel Péri, 92245 Malakoff cedex, France |
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Abstract: | Advertising and price have been shown to signal product quality. Most works limit the number of types to high and low quality. I characterize the optimal separating marketing strategy when both quality and marginal cost are uncertain and continuous variables. |
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Keywords: | L120 L150 M370 |
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