The relationship between optimal advertising level and product quality
| dc.contributor.advisor | Dalkir, Elif | |
| dc.contributor.author | Wang, Zonghui | |
| dc.date.accessioned | 2023-03-01T16:38:37Z | |
| dc.date.available | 2023-03-01T16:38:37Z | |
| dc.date.issued | 2015 | |
| dc.date.updated | 2020-08-25T00:00:00Z | |
| dc.description.abstract | In this report the relationship between advertising level and quality is studied where advertising level is a random variable drawn from Normal distribution or Beta distribution. Consumers' prior beliefs are updated according to Bayesian rule after observing the level of advertising as a signal. In the previous literature the consumers ' beliefs were considered to be only binary, in contrast we examine the perfect Bayesian Nash equilibrium of a signaling game where consumers' beliefs are continuous. When the marginal cost of a high-quality firm is equal to that of a low-quality firm we derive a pooling equilibrium under both Normal and Beta distributions wherein the low-quality firm has an incentive to mimic the advertising level of the high-quality firm. | |
| dc.description.copyright | ©Zonghui Wang, 2015 | |
| dc.description.note | Scanned from archival print submission. | |
| dc.format | text/xml | |
| dc.format.extent | v, 32 pages | |
| dc.format.medium | electronic | |
| dc.identifier.other | Thesis 9598 | |
| dc.identifier.uri | https://unbscholar.lib.unb.ca/handle/1882/14257 | |
| dc.language.iso | en_CA | |
| dc.publisher | University of New Brunswick | |
| dc.rights | http://purl.org/coar/access_right/c_abf2 | |
| dc.subject.discipline | Economics | |
| dc.title | The relationship between optimal advertising level and product quality | |
| dc.type | master thesis | |
| thesis.degree.discipline | Economics | |
| thesis.degree.fullname | Master of Arts | |
| thesis.degree.grantor | University of New Brunswick | |
| thesis.degree.level | masters | |
| thesis.degree.name | M.A. |
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