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Informative advertising and competition: A noncooperative approach. (English) Zbl 0725.90016

Summary: The properties of informative advertising are studied in the context of an imperfectly competitive general equilibrium model of the Cournot- Walras type. Competitive conditions are created using the “replication technique”. It is shown that individually optimal advertising expenditures are zero if the number of agents is large enough in the economy. In other words, even in approximately competitive economies, the informative advertising phenomenon cannot be observed.

MSC:

91B50 General equilibrium theory
90B60 Marketing, advertising
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