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dc.contributor.authorPastine, I.en_US
dc.contributor.authorPastine, T.en_US
dc.date.accessioned2016-02-08T10:32:36Z
dc.date.available2016-02-08T10:32:36Z
dc.date.issued2002en_US
dc.identifier.issn0020-6598
dc.identifier.urihttp://hdl.handle.net/11693/24666
dc.description.abstractThe aim of this article is to demonstrate that advertising can have an important function in markets with consumption externalities apart from its persuasive and informative roles. We show that advertising may function as a device to coordinate consumer expectations of the purchasing decisions of other consumers in markets with consumption externalities. The implications of advertising as a coordinating device are examined in the pricing and advertising decisions of firms interacting strategically. Although, at times, the one-period advertising expense can exceed the one-period monopoly profit, in equilibrium, consumers will pay a premium for the more heavily advertised brand.en_US
dc.language.isoEnglishen_US
dc.source.titleInternational Economic Reviewen_US
dc.relation.isversionofhttp://dx.doi.org/10.1111/1468-2354.t01-1-00041en_US
dc.titleConsumption externalities, coordination, and advertisingen_US
dc.typeArticleen_US
dc.departmentDepartment of Economicsen_US
dc.citation.spage919en_US
dc.citation.epage943en_US
dc.citation.volumeNumber43en_US
dc.citation.issueNumber3en_US
dc.identifier.doi10.1111/1468-2354.t01-1-00041en_US
dc.publisherWiley-Blackwell Publishing, Inc.en_US
dc.identifier.eissn1468-2354


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