arbiter
JournalsPricingAccount

Profit‐Raising Entry With Upstream Advertising

Qing Hu & Tomomichi Mizuno

Manchester School2026https://doi.org/10.1111/manc.70037article
AJG 2ABDC B
Weight
0.50

What the paper says

ABSTRACT We consider a vertical market structure involving an upstream firm that invests in informative advertising and downstream firms producing differentiated products. We investigate whether the entry of new firms can enhance the profits of incumbents in the downstream market. Our findings show that entry may increase incumbent firms' profits when the degree of product substitutability is low or the number of downstream firms is small. This result reverses the conventional view that entry always harms the profits of incumbents by bringing competition. Additionally, we demonstrate that our main results hold under persuasive upstream advertising, downstream informative advertising, and Bertrand competition settings.

Open paper page →

Cite this paper

https://doi.org/https://doi.org/10.1111/manc.70037

Or copy a formatted citation

@article{qing2026,
  title        = {{Profit‐Raising Entry With Upstream Advertising}},
  author       = {Qing Hu & Tomomichi Mizuno},
  journal      = {Manchester School},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1111/manc.70037},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

Profit‐Raising Entry With Upstream Advertising

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.