Short Communications Oligopoly Advertising Strategies with Market Expansion
نویسنده
چکیده
This study extends the literature of dynamic advertising competition by allowing oligopoly competition and market expansion that results from advertising. We "nd how advertising actions a!ect market development and how, conversely, market development in#uences advertising policies over time. Modelling the competition by a di!erential 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 "rm'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. Copyright ( 1999 John Wiley & Sons, Ltd.
منابع مشابه
Competition in Banking: Exogenous or Endogenous Sunk Costs?
Testing the theory of Sutton (1991), this paper presents empirical evidence consistent with the predictions of the endogenous sunk cost model of competition, with an application to banks. In particular, banking markets remain concentrated regardless of market size. Given an asymmetric oligopoly where dominant and fringe firms coexist, the number of dominant banks remains unchanged with market s...
متن کاملAdvertising 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 ...
متن کاملPlanning Marketing-Mix Strategies in the Presence of Interaction Effects
C spend millions of dollars on advertising to boost a brand’s image and simultaneously spend millions of dollars on promotion that many believe calls attention to price and erodes brand equity. We believe this paradoxical situation exists because both advertising and promotion are necessary to compete effectively in dynamic markets. Consequently, brand managers need to account for interactions ...
متن کاملInvestigating the Structure and Model Formulation of Iran’s Export Market: Case study: Kiwi, Apple and Grapes
One of the important strategies in economic development, is development of non-oil exports. In order to increase non-oil export policy, cognition of domestic products priorities that have the necessary conditions of international markets penetration, it seems to be necessary. In this study, the structure of the global market was studied for three products as apples, grapes and kiwi and Iran’s m...
متن کاملCooperative Advertising and Pricing in a Supply Chain: A Bi-level Programming Approach
Nowadays, coordination between members in a supply chain has become very important and beneficial to channel members. Through cooperative advertising, manufacturers and retailers can jointly participate in promotional programs. This action not only reduces the cost of advertising, but also is important to create a link with local retailers in order to increase immediate sales at the retail leve...
متن کامل