Production and Advertising in a Dynamic Hotelling Monopoly

Lambertini, Luca (2001) Production and Advertising in a Dynamic Hotelling Monopoly. Bologna: Dipartimento di Scienze economiche DSE, p. 33. DOI 10.6092/unibo/amsacta/4906. In: Quaderni - Working Paper DSE (395). ISSN 2282-6483.
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Abstract

I characterise the dynamics of capacity accumulation and investment in advertising in a spatial monopoly model, contrasting the socially optimal behavior of a benevolent planner against the behaviour of a profit-maximising monopolist. I show that, in steady state, the monopolist always distorts both kinds of investment as compared to the social optimum, except in a situation where the Ramsey equilibrium prevails under both regimes.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Lambertini, Luca
Keywords
capital accumulation, advertising, steady state, saddle point
Subjects
ISSN
2282-6483
DOI
Deposit date
01 Apr 2016 11:16
Last modified
01 Apr 2016 11:16
URI

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