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Optimizing Advertising Expenditures in a Dynamic Duopoly

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  • Kenneth R. Deal

    (McMaster University, Hamilton, Ontario)

Abstract

The marketing problem of determining the optimal timing of advertising expenditures over a finite planning horizon in a duopoly conflict situation is portrayed as a non-zero-sum differential game. Advertising expenditures are determined which optimize multiobjective performance indices in a Nash equilibrium sense. The dynamics of the market are described by utilizing an extension of the Vidale-Wolfe model of the sales response to advertising. A numerical algorithm is used to solve the model.

Suggested Citation

  • Kenneth R. Deal, 1979. "Optimizing Advertising Expenditures in a Dynamic Duopoly," Operations Research, INFORMS, vol. 27(4), pages 682-692, August.
    • Handle: RePEc:inm:oropre:v:27:y:1979:i:4:p:682-692
    DOI: 10.1287/opre.27.4.682
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