The publication of Lester G. Telser's 1964 paper  was the starting point for
much of the recent literature on advertising and competition. The major finding of
that paper was that "there is little empirical support for an inverse association
between advertising and competition, despite some plausible theorizing to the contrary"
This review does not deal with the question of whether advertising is excessive,
nor with the related issues of the welfare economics of advertising or product differentiation.
Rather, it focuses on those papers which examine the impact of advertising on barriers
to entry and on the extent of price competition. Advertising expenditures are designed
to influence consumer demand for the firm's products. They may affect both direct
and cross-elasticities of demand. Those who argue that advertising may limit competition
maintain that the relevant demand curves are more inelastic and that cross-elasticities
are lower as a result, while those who dispute this contention suggest that advertising
has no such influence or even that it leads to more elastic demands and higher cross-elasticities.
Much controversy has therefore turned on the direction of the effects of advertising
on demand elasticities. [Авторский текст]
Доступен в JStore, Ebsco.