Oligopoly advertising strategies with market expansion

Gila E. Fruchter

Research output: Contribution to journalArticlepeer-review

20 Scopus citations

Abstract

This study extends the literature of dynamic advertising competition by allowing oligopoly competition and market expansion that results from advertising. We find how advertising actions affect market development and how, conversely, market development influences advertising policies over time. Modelling the competition by a differential game, we solve for both time-variant closed-loop and time-invariant feedback Nash equilibrium strategies. The time-variant closed-loop strategy depends on a firm's own sales rates and the time-invariant feedback strategy depends on the growth of the market. We discuss the marketing implications of the results.

Original languageEnglish
Pages (from-to)199-211
Number of pages13
JournalOptimal Control Applications and Methods
Volume20
Issue number4
DOIs
StatePublished - Jul 1999
Externally publishedYes

Fingerprint

Dive into the research topics of 'Oligopoly advertising strategies with market expansion'. Together they form a unique fingerprint.

Cite this