On the state advertising policy under quality information bias

Yasunori Ishii

    Research output: Contribution to journalArticle

    4 Citations (Scopus)

    Abstract

    This paper analyzes the effects of the state advertising policy of a developing country on the quality-price competition between its firm and a developed country's firm in an international duopoly. It considers the quality information bias under which the product quality of the developing country's firm is underestimated and the state advertising policy that is implemented by the developing country in order to improve such information bias at a national expense. We show that while a rise in the state advertising expense of the developing country raises (reduces) the quality, price, and profit of the firm in the developing (developed) country, it makes the firms' quality-price competition more intense, and vice versa. We also find that the developing country's state advertising policy is an incomplete-bias-adjusting policy that does not completely eradicate the quality information bias of its firm.

    Original languageEnglish
    Pages (from-to)571-584
    Number of pages14
    JournalReview of Development Economics
    Volume17
    Issue number3
    DOIs
    Publication statusPublished - 2013 Aug

    Fingerprint

    firm
    developing world
    developing country
    trend
    policy
    profit
    price
    developed country

    ASJC Scopus subject areas

    • Geography, Planning and Development
    • Development

    Cite this

    On the state advertising policy under quality information bias. / Ishii, Yasunori.

    In: Review of Development Economics, Vol. 17, No. 3, 08.2013, p. 571-584.

    Research output: Contribution to journalArticle

    Ishii, Yasunori. / On the state advertising policy under quality information bias. In: Review of Development Economics. 2013 ; Vol. 17, No. 3. pp. 571-584.
    @article{27ad8846fe414c24b5c3642a5dd0b60a,
    title = "On the state advertising policy under quality information bias",
    abstract = "This paper analyzes the effects of the state advertising policy of a developing country on the quality-price competition between its firm and a developed country's firm in an international duopoly. It considers the quality information bias under which the product quality of the developing country's firm is underestimated and the state advertising policy that is implemented by the developing country in order to improve such information bias at a national expense. We show that while a rise in the state advertising expense of the developing country raises (reduces) the quality, price, and profit of the firm in the developing (developed) country, it makes the firms' quality-price competition more intense, and vice versa. We also find that the developing country's state advertising policy is an incomplete-bias-adjusting policy that does not completely eradicate the quality information bias of its firm.",
    author = "Yasunori Ishii",
    year = "2013",
    month = "8",
    doi = "10.1111/rode.12051",
    language = "English",
    volume = "17",
    pages = "571--584",
    journal = "Review of Development Economics",
    issn = "1363-6669",
    publisher = "Wiley-Blackwell",
    number = "3",

    }

    TY - JOUR

    T1 - On the state advertising policy under quality information bias

    AU - Ishii, Yasunori

    PY - 2013/8

    Y1 - 2013/8

    N2 - This paper analyzes the effects of the state advertising policy of a developing country on the quality-price competition between its firm and a developed country's firm in an international duopoly. It considers the quality information bias under which the product quality of the developing country's firm is underestimated and the state advertising policy that is implemented by the developing country in order to improve such information bias at a national expense. We show that while a rise in the state advertising expense of the developing country raises (reduces) the quality, price, and profit of the firm in the developing (developed) country, it makes the firms' quality-price competition more intense, and vice versa. We also find that the developing country's state advertising policy is an incomplete-bias-adjusting policy that does not completely eradicate the quality information bias of its firm.

    AB - This paper analyzes the effects of the state advertising policy of a developing country on the quality-price competition between its firm and a developed country's firm in an international duopoly. It considers the quality information bias under which the product quality of the developing country's firm is underestimated and the state advertising policy that is implemented by the developing country in order to improve such information bias at a national expense. We show that while a rise in the state advertising expense of the developing country raises (reduces) the quality, price, and profit of the firm in the developing (developed) country, it makes the firms' quality-price competition more intense, and vice versa. We also find that the developing country's state advertising policy is an incomplete-bias-adjusting policy that does not completely eradicate the quality information bias of its firm.

    UR - http://www.scopus.com/inward/record.url?scp=84880602246&partnerID=8YFLogxK

    UR - http://www.scopus.com/inward/citedby.url?scp=84880602246&partnerID=8YFLogxK

    U2 - 10.1111/rode.12051

    DO - 10.1111/rode.12051

    M3 - Article

    VL - 17

    SP - 571

    EP - 584

    JO - Review of Development Economics

    JF - Review of Development Economics

    SN - 1363-6669

    IS - 3

    ER -