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Abstract
This paper discusses from the wool industry's point of view its optimal level of expenditure on wool promotion and its optimal policy in promoting wool blends. The relevance of the Dorfman-Steiner and Nerlove-Waugh theorems relating to advertising is questioned. Mathematical conditions for the optimal allocation of promotional funds between pure wool and wool blends are outlined and game theory is used to consider whether the wool industry should leave the promotion of wool blends to makers of man-made fibres.