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Economic Journal

Опубликовано на портале: 31-03-2003
Joseph Hadar Economic Journal. 1969.  Vol. 36. No. 1. P. 67-74. 
The main results of the analysis can be briefly summarized. It was shown that it is possible to specify the nature of the effects of advertising on the demand function of a monopolistically competitive firm in a fashion which leads to meaningful and testable hypotheses. The approach followed in this paper produced a model in which the effects of changes in the shift parameters on the levels of output and advertising are always determinate. Furthermore, we saw that if the firm is a competitive buyer of advertising, then it turns out that the advertising ratio is invariant to changes in parameters belonging to a certain class, an example of which is an excise tax. Changes in parameters in the latter class also result in a predictable 4 Sufficient conditions for stability of much an adjustment process are given in Hadar [4]. change in the price of the firm's output, since the price always moves in a direction opposite to that of the change in output whenever output and advertising change by the same proportion. [Авторский текст]
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