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Complex dynamics of the generic and brand advertising strategies in duopoly

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  • Qi, Jie
  • Ding, Yongsheng
  • Chen, Liang

Abstract

By using the optimal profit adjusting strategies, a dynamic advertising competition model in duopoly is extended from Krishnamurthy’s static model. Both generic and brand effects for advertising are considered. This model can create complex bifurcating and chaotic behavior for the generic advertising efforts, which lead to chaotic dynamics for the brand advertising and even for the whole system. The asymptotic properties of the symmetric system and the asymmetric system are also investigated, which reflect interactions between the two firms’ advertising strategies and relationships between the brand and the generic advertising expenditures.

Suggested Citation

  • Qi, Jie & Ding, Yongsheng & Chen, Liang, 2008. "Complex dynamics of the generic and brand advertising strategies in duopoly," Chaos, Solitons & Fractals, Elsevier, vol. 36(2), pages 354-358.
    • Handle: RePEc:eee:chsofr:v:36:y:2008:i:2:p:354-358
    DOI: 10.1016/j.chaos.2006.06.054
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    References listed on IDEAS

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    Cited by:

    1. Yuanfang Lin & Sandeep Krishnamurthy, 2017. "Generic and Brand Advertising Strategies Under Inter-Industry Competition," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 4(1), pages 18-27, September.

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