What might be a general distinction between oligopolists that advertise and those that do not???
2007-03-19 06:08:33 · 3 answers · asked by prettypls, 1 in Social Science ➔ Economics
Consumer base.
If the good is sold mainly to all the public (soda, soft ware, ect) , then they can advertise to keep the public interest and keep competitors away.
If the good is sold mainly to a sector (farmers, copyrighted medicine, utilities) & is subsidized by government stabilization, then they wouldn't need to advertise and would be a waste of money.
2007-03-19 06:20:41 · answer #1 · answered by Giggly Giraffe 7 · 0⤊ 0⤋
If an oligopolist puts out a standardized or uniform product (pure oli) they may be less likely to advertise the product ( why bother, its the same as the other guys). They may want to advertise themselves at the superior provider of this standard product. They may want to advertise their image, etc. An oli who is selling a differentiated product however, would have extensive advertisement to communicate how their product is superior to the other guys.
2007-03-19 17:53:58 · answer #2 · answered by econgal 5 · 0⤊ 0⤋
if the goods are the same then it is less important to advertise. Take cars since there is a difference you can get product loyalty. If the good is more or less a commodity with no differences between producers then no need to advertise
2007-03-19 15:36:27 · answer #3 · answered by uncle frosty 4 · 1⤊ 0⤋