Strategic Advertising: Fat-Cat Effect and Stability
Document Type
Article
Journal/Book Title/Conference
Mathematical Social Sciences
Volume
54
Publication Date
2006
First Page
125
Last Page
146
Abstract
We use the theory of social situations (TOSS) to examine the stable advertising behavior and pricing. In contrast to the current literature, we show that the incumbent firm need not maintain a hungry-look by under-investing in advertising expenditure in order to deter entry.
Recommended Citation
“Strategic Advertising: Fat-cat Effect and Stability,” (with H. Beladi), Mathematical Social Sciences 51, 2006, 125-146.