Advertising in a Differential Oligopoly Game

Advertising in a Differential Oligopoly Game*

We illustrate a differential oligopoly game where firms compete à la Cournot in homogeneous goods in the market phase, and invest in advertising activities aimed at increasing consumers’ reservation price. Such investments produce external effects, characterizing the advertising activity as a public good. We derive the open-loop and the closed-loop Nash equilibria, and show that the properties ...

A Differential Oligopoly Game with Sticky Prices and Environmental Externality

a differential oligopoly game with sticky prices and environmental externality

A mathematical model of the effect of subsidy transfer in cooperative advertising using differential game theory

This work deals with subsidy transfer from a manufacturer to a retailer through the distributor in cooperative advertising. While the retailer engages in local advertising, the manufacturer indirectly participates in retail advertising using advertising subsidy which is given to the distributor, who in turn transfers it to the retailer. The manufacturer is the Stackelberg game leader; the distr...

The Leitmann-Schmitendorf advertising differential game

The paper revisits the advertising differential game suggested by Leitmann and Schmitendorf [1]. We put the model into perspective and discuss the related issues of (i) state separable (or linear-state) games and (ii) open-loop equilibria that are feedback equilibria which are constant with respect to state. 2010 Elsevier Inc. All rights reserved.