NATIONAL AND RETAIL ADVERTISING: THEIR EFFECTS ON COMPETITION
ROBERT J. TOKLE
(Assistant Professor, Idaho State University)
322
Abstract
There are two basic theoretical views of how advertising affects competition. One school of thought suggests that advertising decreases competition. Kaldor (1950) argued that through economies of scale in advertising, advertising increases market concentration. Also, Bain (1956) suggested that advertising causes strong product differentiation and brand loyalty, which are barriers to entry and will lead to higher concentration.
Citation
TOKLE, R.J. (1990), "NATIONAL AND RETAIL ADVERTISING: THEIR EFFECTS ON COMPETITION", Studies in Economics and Finance, Vol. 13 No. 1, pp. 56-72. https://doi.org/10.1108/eb028690
Publisher
:MCB UP Ltd
Copyright © 1990, MCB UP Limited