Given its restrictive assumptions, it is not surprising that some real world markets are not completely described bythe model. Themodel predicts that persuasive advertising can be used to enhance the market power, produce a symmetric equilibrium when advertising creates subjective horizontal differentiation, and produce an asymmetric equilibrium when advertising creates subjective vertical differentiation. These predictions are based on a duopoly model in which consumers have a uniform distribution of tastes, products are physically identical, and producers are single product producers.