Equilibrium Distribution of Advertising Prices

  • Qianqin Chen
  • Wei-Guo Zhang
  • Guoliang Kuang
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 4041)


This paper formulates a model of advertising prices in which a homogeneous product is not intended for sales at conventional stores. The product is sold by means of advertising instead. Applications of this model can be found on numerous sales activities include, for example, insurance companies, television shopping channels and Internet e-tailers who advertise their products and prices by sending e-mails to potential buyers or by means of popup windows. This paper makes endogenous both firm advertising and price strategies in the model.


Equilibrium Distribution Price Dispersion Advertising Strategy Popup Window Advertising Cost 
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Copyright information

© Springer-Verlag Berlin Heidelberg 2006

Authors and Affiliations

  • Qianqin Chen
    • 1
  • Wei-Guo Zhang
    • 2
  • Guoliang Kuang
    • 1
  1. 1.School of Commerce and EconomySouth China University of TechnologyGuangzhouP.R. China
  2. 2.School of Business AdministrationSouth China University of TechnologyGuangzhouP.R. China

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