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Author

A. Pazgal

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Oct 2026

EXPRESS: Why are products so similar despite diverse consumer needs? The interplay between advertising and horizontal product differentiation

Firms are often less differentiated than standard price-competition models predict. We explain this gap by showing how firms can use informative or reminder advertising to soften competition. When firms choose locations, advertising, and prices endogenously, they may choose to soften price competition through limited a...

A. Pazgal, D. Soberman, R. Thomadsen · 0 citations

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