The intuition is that when other sellers are charging a price above the marginal cost, one seller has an incentive to advertise a slightly lower price in order to take the whole market.
One seller chooses 'to advertise,' but all other sellers choose 'not to advertise' Let us call this pricing subgame the 'one-ad pricing game.' Without loss of generality, suppose seller 1 chooses to advertise, all of the other sellers choose not to advertise.
Shamrock Industries, Inc., for example, the court said, "While activity directed at one customer seems to stretch the meaning of advertising, Black's Law Dictionary's definition of 'advertise' encompasses any form of solicitation, presumably including solicitation of one person."
The universe of information potentially impacted by this decision is immense, because many businesses view their Web site as not only a means to advertise their products, but also as way to invite attention to current events, provide helpful information to the community, update their stockholders, and so on.
The reseller does not view itself as being in the advertising business or even performing a service on the vendor's behalf, it advertises as part of normal business strategies regardless of whose merchandise is being advertised.
Resellers advertise products to increase sales whether or not an allowance is available from the vendor.
The softening effect on pricing strategies and hence the incentive to advertise
depends on to what extent products actually differ.
It is also appropriate for a local ordinance to permit a sign to continue in existence until it no longer advertises
a business on the premises.
Each respondent was asked to answer questions about the number of professionals in the firm, the firm's perceptions concerning competitors' advertising, and whether the firm currently advertises
. The second part, which was completed only by those respondents who indicated that they advertised, addressed the reasons why they advertised and the advertising media they used.