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An Investigation of Stackelberg Mixed Oligopoly with Advertising Competition

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  • Jiancai Pi
  • Pengqing Zhang
  • Xuyang Chen

Abstract

This paper conducts a comprehensive investigation of Stackelberg mixed oligopoly with advertising competition. We focus our attention on misleading advertising, and at the same time derive some results that are closely related to profit†raising entry. Different from Matsumura and Sunada (Economics Letters, Vol. 119 (2013), pp. 183–185), we find that it is the leadership of the public firm in the advertising stage that may lead to the negative advertising level of the public firm and make the profit of each private firm decrease in the number of the private firms. In addition, we also find that the public leadership in the advertising stage may lead to the negative aggregate advertising level.

Suggested Citation

  • Jiancai Pi & Pengqing Zhang & Xuyang Chen, 2018. "An Investigation of Stackelberg Mixed Oligopoly with Advertising Competition," Manchester School, University of Manchester, vol. 86(4), pages 468-487, July.
    • Handle: RePEc:bla:manchs:v:86:y:2018:i:4:p:468-487
    DOI: 10.1111/manc.12191
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    Cited by:

    1. Junichi Haraguchi & Toshihiro Matsumura, 2020. "Endogenous public and private leadership with diverging social and private marginal costs," Manchester School, University of Manchester, vol. 88(5), pages 699-730, September.
    2. Sharma, Ajay, 2019. "Misleading Advertising in Mixed Markets: Consumer-orientation and welfare outcomes," MPRA Paper 96189, University Library of Munich, Germany.

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