Pure-strategy Nash equilibria in an advertising game with interference

Bruno Viscolani

European Journal of Operational Research, 2012, vol. 216, issue 3, 605-612

Abstract: Two manufacturers produce substitutable goods for a homogeneous market. The advertising efforts of the two manufacturers determine the demand for the goods and interfere negatively with each other. The demand of each good is a piecewise linear function of the product goodwill, and the latter is a linear function of advertising efforts. In a game with two competing profit-maximizing manufacturers who have access to a set of several advertising media, the pure-strategy Nash equilibria are characterized and their existence is shown.

Keywords: Game theory; Marketing; Non-cooperative games; Advertising; Nash equilibrium; Nonsmooth optimization (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:216:y:2012:i:3:p:605-612

DOI: 10.1016/j.ejor.2011.08.002

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