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Competition for networked agents in the lottery Blotto game

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  • Jiao, Qian
  • Xu, Jin

Abstract

This paper examines a duopoly setting in which two firms target their marketing budgets to agents embedded in a social network. Depicting the competition between two firms as a lottery Blotto game, we characterize the equilibrium marketing strategies and study how the network externality affects firms’ marketing decision. Examples of networks are further provided to illustrate how the marketing strategies depend on the agents’ network structures and the strength of network effect.

Suggested Citation

  • Jiao, Qian & Xu, Jin, 2020. "Competition for networked agents in the lottery Blotto game," Economics Letters, Elsevier, vol. 197(C).
    • Handle: RePEc:eee:ecolet:v:197:y:2020:i:c:s0165176520304043
    DOI: 10.1016/j.econlet.2020.109644
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    References listed on IDEAS

    as
    1. Ying‐Ju Chen & Yves Zenou & Junjie Zhou, 2018. "Competitive pricing strategies in social networks," RAND Journal of Economics, RAND Corporation, vol. 49(3), pages 672-705, September.
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    More about this item

    Keywords

    Competition; Lottery Blotto game; Marketing; Social network; Network externality;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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