Glossary of economics research
Results of search for market power theory of advertising follow:
market power theory of advertising:
That established firms use advertising as a barrier to entry through product
differentiation. Such a firm's use of advertising differentiates its brand
from other brands to a degree that consumers see its brand is a slightly
different product, not perfectly substituted by existing or potential
competitors. This makes it hard for new competitors to gain consumer
acceptance.
Contexts: IO
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