The relationship between optimal advertising level and product quality

dc.contributor.advisorDalkir, Elif
dc.contributor.authorWang, Zonghui
dc.date.accessioned2023-03-01T16:38:37Z
dc.date.available2023-03-01T16:38:37Z
dc.date.issued2015
dc.date.updated2020-08-25T00:00:00Z
dc.description.abstractIn 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.noteScanned from archival print submission.
dc.formattext/xml
dc.format.extentv, 32 pages
dc.format.mediumelectronic
dc.identifier.otherThesis 9598
dc.identifier.urihttps://unbscholar.lib.unb.ca/handle/1882/14257
dc.language.isoen_CA
dc.publisherUniversity of New Brunswick
dc.rightshttp://purl.org/coar/access_right/c_abf2
dc.subject.disciplineEconomics
dc.titleThe relationship between optimal advertising level and product quality
dc.typemaster thesis
thesis.degree.disciplineEconomics
thesis.degree.fullnameMaster of Arts
thesis.degree.grantorUniversity of New Brunswick
thesis.degree.levelmasters
thesis.degree.nameM.A.

Files

Original bundle
Now showing 1 - 1 of 1
Loading...
Thumbnail Image
Name:
item.pdf
Size:
16.77 MB
Format:
Adobe Portable Document Format