NATIONAL AND RETAIL ADVERTISING: THEIR EFFECTS ON COMPETITION

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