Equilibrium Pricing under Concave Advertising Costs

Autor:	Klaus Kultti, Teemu Pekkarinen
Rok vydání:	2021
Předmět:	TheoryofComputation_MISCELLANEOUS History Polymers and Plastics TheoryofComputation_GENERAL Business and International Management General Economics Econometrics and Finance Industrial and Manufacturing Engineering
Zdroj:	SSRN Electronic Journal.
ISSN:	1556-5068
DOI:	10.2139/ssrn.3922689
Popis:	We study Butters’s (1977. “Equilibrium Distributions of Sales and Advertising Prices.” The Review of Economic Studies 44 (3): 465–91) model under concave advertising costs, and determine a class of cost functions such that each seller sends the same finite number of ads in equilibrium. Then we consider the limit economy where the number of buyers and sellers grow indefinitely, and show that the equilibrium of the finite economy does not converge to an equilibrium in the limit economy.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_dedup___::9f060282c1eb7c344706986c9b0bef41 https://doi.org/10.2139/ssrn.3922689 Zobrazit plný text záznamu