university of alicante

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Advertising, Brand Loyalty and Pricing

The author constructs a model in which an oligopoly first invests in persuasive advertising in order to induce brand loyalty to consumers who would otherwise buy the cheapest alternative on the market, and then competes in prices. Despite ex-ante symmetry, at equilibrium, there is one firm which chooses a lower...

Tags: Advertisement, Brand, Brand Loyalty, Pricing Strategy, University Of Alicante

White papers 2005-11-01

Are Loyalty-Rewarding Pricing Schemes Anti-Competitive?

Many economists and policy analysts seem to believe that loyalty rewarding pricing schemes, like frequent flyer programs, tend to reinforce firms' market power and hence are detrimental to consumer welfare. The existing academic literature has supported this view to some extent. In contrast, this paper argues that these programs are...

Tags: Pricing Strategy, University Of Alicante, Pricing, Marketing Research, Marketing

White papers 2005-11-01

The EU Eastern Enlargement And FDI: The Implications From A Neoclassical Growth Model

This paper studies how the EU European Union Eastern enlargement can affect the economies of the old and the new EU members and the non-acceded countries in the context of a multi-country neoclassical growth model where Foreign Direct Investment FDI is subject to border costs. The authors assume that in...

Tags: Foreign Direct Investment, European Union, University Of Alicante, Foreign Direct Investment (FDI), Currency & Foreign Exchange, Investment, Finance

White papers 2005-11-17