Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/159331
Authors: 
Colombo, Luca
Lambertini, Luca
Year of Publication: 
2003
Series/Report no.: 
Quaderni - Working Paper DSE 490
Abstract: 
We investigate a differential duopoly game where each firm, through capital accumulation over time, may invest both in persuasive advertising campaigns aimed at increasing the willingness to pay of consumers and in an R&D process aimed at increasing the level of own product quality. In contrast with the acquired wisdom based on static models, the firm providing the market with the inferior variety may earn higher profits than the rival. More than this, we show that there exists a range of parameters wherein the low quality firm commands monopoly power.
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by/3.0/
Document Type: 
Working Paper

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