Advertising in an oligopoly with differentiated goods under general demand and cost functions: A differential game approach
Optimization and Control
2019-06-13 v1 Computer Science and Game Theory
Abstract
We present an analysis of advertising activities in a dynamic oligopoly with differentiated goods by differential game approach under general demand and cost functions. Mainly we show the following results. The comparison of the open-loop solution and that of the closed-loop solution depends on whether the outputs of the firms are strategic substitutes or strategic complements, and the memoryless closed-loop solution and the feedback solution are equivalent when there is no spillover effect of advertising activities.
Keywords
Cite
@article{arxiv.1906.04824,
title = {Advertising in an oligopoly with differentiated goods under general demand and cost functions: A differential game approach},
author = {Masahiko Hattori and Yasuhito Tanaka},
journal= {arXiv preprint arXiv:1906.04824},
year = {2019}
}
Comments
17 pages. arXiv admin note: text overlap with arXiv:1906.03995