The paper formalizes the intuition that brands are consumed for image reasons and that advertising creates a brand’s image. The key idea is that advertising informs the public of brand names and creates the possibility of conspicuous consumption by rendering brands a signalling device. In a price competition framework, we show that advertising increases consumers’ willingness to pay and thus pr...

extended abstract 1. introduction lalejin, with more than 750 years history of pottery and ceramic production is one of the most important parts of the pottery production in iran. on the other hand, the highest employment rate of hamadan province (87/3%) is dedicated to this city. besides, regarding the local and foreign tourists, lalejin has always been considered as a tourism center in hamada...

Despite the empirical relevance of advertising strategies in concentrated markets, the economics literature is largely silent on the effect of persuasive advertising strategies on pricing, market structure and increasing (or decreasing) dominance. In a simple model of persuasive advertising and pricing with differentiated goods, we analyze the interdependencies between ex-ante asymmetries in co...

Blogs emerged in the late 1990s as a technology that allows Internet users to share information. As an emerging advertising medium, blog advertising still faces challenges related to lukewarm consumer responses and unclear regulations governing commercial blog speeches. In this study, the concept of social influence was employed to examine its effects on consumer’s use of blog advertising. A qu...

The existing marketing literature suggests that persuasive advertising elicits counteractions from competing manufacturers and consequently leads to wasteful cancellation of the advertising effects. Thus, persuasive advertising is widely perceived to be combative in nature. A series of papers by Shaffer and Zettelmeyer (2002, 2004a,b) demonstrate that appropriate targeting may partially mitigat...

Game theory is an efficient tool to represent and conceptualize the problems concerning conflict and competition. In recent years and especially for durable products, competition between domestic and foreign brands for gaining market share has received a considerable attention. This paper study electronic commerce concepts by differential game theory and introduce a novel and comprehensive mode...