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Pré-Publication, Document De Travail Année : 2010

Advertising and R&D: Theory and evidence from France

Résumé

This paper exploits a unique panel of 59,000 French firms over 1990-2004 to investigate the interactions between R&D, advertising and the competitive environment.The empirical findings confirm the predictions of a dynamic model that complements results known in static frameworks. First, more competition pushes Neck and Neck firms to advertise more to attract a larger share of consumers on their products or services. Second, for a given competitive environment, quality leaders spend more in advertising in order to extract maximal rents; thus, lower costs of ads may favor R&D.
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Dates et versions

halshs-00564988 , version 1 (10-02-2011)

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  • HAL Id : halshs-00564988 , version 1

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Philippe Askenazy, Thomas Breda, Delphine Irac. Advertising and R&D: Theory and evidence from France. 2010. ⟨halshs-00564988⟩
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