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Pure-strategy Nash equilibria in an advertising game with interference

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  • Viscolani, Bruno

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.

Suggested Citation

  • Viscolani, Bruno, 2012. "Pure-strategy Nash equilibria in an advertising game with interference," European Journal of Operational Research, Elsevier, vol. 216(3), pages 605-612.
    • Handle: RePEc:eee:ejores:v:216:y:2012:i:3:p:605-612
    DOI: 10.1016/j.ejor.2011.08.002
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    Cited by:

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    3. Giri, B.C. & Sharma, S., 2014. "Manufacturer's pricing strategy in a two-level supply chain with competing retailers and advertising cost dependent demand," Economic Modelling, Elsevier, vol. 38(C), pages 102-111.
    4. Jiacai Liu & Wenjian Zhao, 2016. "Cost-Sharing of Ecological Construction Based on Trapezoidal Intuitionistic Fuzzy Cooperative Games," IJERPH, MDPI, vol. 13(11), pages 1-12, November.

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