Affordable Access

Werbung und Marktabfälle bei auftrags- und bei marktorientierter Produktion



Both ex post production to order and market-oriented ex ante production involve specific costs. With consumer goods produced "for the market", costs arise for disposal of excess production. Firms advertise, in order to inform buyers. Conditions for market equilibrium for pure production to order, pure market-oriented production and a mixed structure are analysed. As disposal costs rise, the market share of firms producing to order increases, while the volume of advertising and sales fall. When consumers seek for a favourable offer, the advertised range of prices and the advertising coverage are endogenous. As disposal costs rise, advertising coverage decreases.

There are no comments yet on this publication. Be the first to share your thoughts.