2006-06-10 papers

on Industrial Organization

Issue of 2006‒06‒10
two papers chosen by

Co-branding in advertising: the issue of product and brand fit By M. GEUENS; C. PECHEUX
Local Network Externalities and Market Segmentation By Banerji, A; Dutta, Bhaskar

Co-branding in advertising: the issue of product and brand fit

By:	M. GEUENS; C. PECHEUX
Abstract:	Three studies are conducted to investigate co-branding in advertising by manipulating product and brand fit. Polarity of brand images (positive or neutral) and the type of ad processing (topdown versus bottom up) were also taken into account. The results show that either product or brand fit is sufficient to produce positive attitudes towards the core brand in case of a high image core brand. However, these results do not hold for core brands with a neutral image. In that case, brands better team up with a brand possessing high product fit and/or a positive image instead of a similar image.
Date:	2006–04
URL:	http://d.repec.org/n?u=RePEc:rug:rugwps:06/378&r=ind

Local Network Externalities and Market Segmentation

By:	Banerji, A (Delhi School of Economics, University of Delhi); Dutta, Bhaskar (Department of Economics, University of Warwick,)
Abstract:	This paper models interaction between groups of agents by means of a graph where each node represents a group of agents and an arc represents bilateral interaction. It departs from the standard Katz-Shapiro framework by assuming that network benefits are restricted only amongst groups of linked agents. It shows that even if rival firms engage in Bertrand competition, this form of network externalities permits strong market segmentation in which firms divide up the market and earn positive profits. The analysis also shows that some graphs or network structures do not permit such segmentation, while for others, there are easy to interpret conditions under which market segmentation obtains in equilibrium
Keywords:	network structure ; network externalities ; price competition ; market segmentation
JEL:	D7
Date:	2005
URL:	http://d.repec.org/n?u=RePEc:wrk:warwec:725&r=ind

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