Advertising and Oligopolistic Equilibrium

James Friedman

Bell Journal of Economics, 1983, vol. 14, issue 2, 464-473

Abstract: This article analyzes advertising in an n-firm infinite horizon, differentiated products oligopoly. The firms all choose output and advertising levels in each period, and are assumed to behave noncooperatively. Advertising is characterized in a manner similar to capital: the effects of money spent on advertising today last well into the future. The interfirm advertising effect can be either cooperative or predatory, and in a linear-quadratic version of the model, this degree of cooperativeness is represented by a parameter. Existence and uniqueness of the Nash equilibrium are obtained, along with many comparative statics results.

Date: 1983
References: Add references at CitEc
Citations: View citations in EconPapers (69)

Downloads: (external link)
http://links.jstor.org/sici?sici=0361-915X%2819832 ... O%3B2-Y&origin=repec full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rje:bellje:v:14:y:1983:i:autumn:p:464-473

Ordering information: This journal article can be ordered from
https://editorialexp ... i-bin/rje_online.cgi

Access Statistics for this article

More articles in Bell Journal of Economics from The RAND Corporation
Bibliographic data for series maintained by ().