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Llanis Llanis
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6 years ago
Under what conditions would firms be likely to support an industry-wide advertising ban?
Textbook 
Microeconomics

Microeconomics


Edition: 6th
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6 years ago
If advertising only takes share away from rivals, the firms in the industry are better off if advertising is banned. Yet, if advertising is not banned, their dominant strategy is to advertise. This Nash equilibrium of all firms advertising, however, does not yield maximum joint profits.
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