Strategic Advertising: Fat-Cat Effect and Stability
Mathematical Social Sciences
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.
“Strategic Advertising: Fat-cat Effect and Stability,” (with H. Beladi), Mathematical Social Sciences 51, 2006, 125-146.