Paper Title :
Market Structure: a Theoretical Approach to Effects of Advertising on Products Price and Quality
This study investigates the effects of advertising on price and quality of products in monopoly and duopoly markets. We examine, by a diagrammatical approach, the state of profitability in a firm both before and after advertising being implemented. Our results show that advertising is directly related to the price and profitability in a monopoly market; however, in the context of a duopoly market, the relationship is uncertain. Our findings also suggest that quality tends to be higher when the price is higher and vice versa. This conclusion holds true for the monopoly market and for the duopoly market.