What happens if a firm advertises, but only some peo- ple see the ads? Hint: Consider the
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What happens if a firm advertises, but only some peo- ple see the ads? Hint: Consider the tourists-and-natives model in Chapter 13 . 4 . A manufacturer uses vertical restraints in its contract with its dealer network (see Chapter 12) to encourage dealers to advertise locally. Under what conditions are such vertical restraints socially desirable?
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Modern Industrial Organization
ISBN: 9780321011459
3rd Edition
Authors: Dennis W. Carlton, Jeffrey M. Perloff
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