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Selling Costs and Cognitive Distancing

In: Price and Nonprice Rivalry in Oligopoly

Author

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  • Robert E. Kuenne

    (Princeton University)

Abstract

The last, and very important, component of nonprice competition that we will model is advertising — or, more broadly, selling cost activities — which we will treat as extrinsic characteristics of products. Their costs are distinguished from production and consonance costs as expenditures whose purposes are to affect demand functions for the brands rather than supply conditions.

Suggested Citation

  • Robert E. Kuenne, 1998. "Selling Costs and Cognitive Distancing," Palgrave Macmillan Books, in: Price and Nonprice Rivalry in Oligopoly, chapter 12, pages 328-388, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-50371-7_12
    DOI: 10.1007/978-0-230-50371-7_12
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