Li Keke, Tang Xiaowo. Advertising Competition and Barrier to Entry[J]. Journal of University of Electronic Science and Technology of China, 1999, 28(6): 652-654.
Citation: Li Keke, Tang Xiaowo. Advertising Competition and Barrier to Entry[J]. Journal of University of Electronic Science and Technology of China, 1999, 28(6): 652-654.

Advertising Competition and Barrier to Entry

  • A model of advertising competition with duopoly is established. Through the equilibrium of two-stage game, the cost condition is drawn when advertising investment forms barriers to entry。It is concluded that firms will take advantages of preemptive advertising which would be a kind of barrier to barrier to entry. But it will not last for a long time.
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