Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/63104 
Erscheinungsjahr: 
2006
Schriftenreihe/Nr.: 
Memorandum No. 2006,24
Verlag: 
University of Oslo, Department of Economics, Oslo
Zusammenfassung: 
We present a theory of how advertising can break a lock-in by distorting beliefs about market shares in markets with network externalities. On the background of the availability heuristic we assume that people learn about market shares by observing product adoption of others, but are not able to fully distinguish between observations of real people and …ctitious characters in advertisements. We look at a game between an incumbent and an entrant producing close substitutes. Our analysis shows that if the entrant’s product is of su¢ ciently high quality, then the entrant will use advertising in order to break the lock-in and the incumbent will not advertise at all. However, if the quality di¤erential between the two products is small, then the incumbent may advertise and make it unpro…table for the entrant to break the lock-in.
Schlagwörter: 
Advertising
availability heuristic
herding behavior
information
lock-in
JEL: 
D21
L10
M37
Dokumentart: 
Working Paper

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