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https://doi.org/10.1080/1331677X.2019.1661002

Effects of celebrity endorsement on firms’ competition: from industrial organisation perspective

Puni tekst: engleski, pdf (2 MB) str. 3224-3246 preuzimanja: 60* citiraj
APA 6th Edition
(2019). Effects of celebrity endorsement on firms’ competition: from industrial organisation perspective. Economic research - Ekonomska istraživanja, 32 (1), 3224-3246. https://doi.org/10.1080/1331677X.2019.1661002
MLA 8th Edition
"Effects of celebrity endorsement on firms’ competition: from industrial organisation perspective." Economic research - Ekonomska istraživanja, vol. 32, br. 1, 2019, str. 3224-3246. https://doi.org/10.1080/1331677X.2019.1661002. Citirano 04.04.2020.
Chicago 17th Edition
"Effects of celebrity endorsement on firms’ competition: from industrial organisation perspective." Economic research - Ekonomska istraživanja 32, br. 1 (2019): 3224-3246. https://doi.org/10.1080/1331677X.2019.1661002
Harvard
(2019). 'Effects of celebrity endorsement on firms’ competition: from industrial organisation perspective', Economic research - Ekonomska istraživanja, 32(1), str. 3224-3246. https://doi.org/10.1080/1331677X.2019.1661002
Vancouver
Effects of celebrity endorsement on firms’ competition: from industrial organisation perspective. Economic research - Ekonomska istraživanja [Internet]. 2019 [pristupljeno 04.04.2020.];32(1):3224-3246. https://doi.org/10.1080/1331677X.2019.1661002
IEEE
"Effects of celebrity endorsement on firms’ competition: from industrial organisation perspective", Economic research - Ekonomska istraživanja, vol.32, br. 1, str. 3224-3246, 2019. [Online]. https://doi.org/10.1080/1331677X.2019.1661002

Sažetak
Product endorsement is employed by many firms and most studies have proceeded based on management perspectives and ignored the strategic effects (or indirect effects). However, as a non-price competition, product endorsement behaviour’s strategic effects are valuable to be considered and convenient to be captured by industrial organisation perspective. So, this paper’s purpose is to reveal the strategic effects of product endorsement by industrial organisation perspective. First, the results of this paper show that celebrity endorsement decreases the rival’s benefits. Second, under a unique endorser, the lower efficiency (measured by marginal production cost) firm’s celebrity endorsement improves price difference and dispersion, which are direct effects of product endorsement. The higher efficiency firm’s endorsement promotes the producer surplus, consumer surplus and social welfare, which are called indirect effects. Finally, celebrity endorsement has trigger effects. If one firm launches celebrity endorsement, the rational reaction for its rivals is also to engage in a similar behaviour. This paper expands the celebrity endorsement issue from management to economics perspective.

Ključne riječi
Market structure; product substitutability; product endorsement; social welfare; game theory

Hrčak ID: 229653

URI
https://hrcak.srce.hr/229653

Posjeta: 91 *