A Game-Theoretic Model of Strategic Interaction Using Advertising: Simulating the Evolution of the Cournot Nash Equilibrium under Different Competitive Scenarios

被引：1
作者：
Brady, Malcolm [1 ]
机构：
[1] Dublin City Univ, Sch Business, Dublin 9, Ireland
来源：
GAMES | 2021年 / 12卷 / 04期
关键词：
strategic interaction; game theory; advertising; duopoly; Cournot; simulation; BRAND; DUOPOLY; PRICE;
D O I：
10.3390/g12040085
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
This paper examines the behaviour of two firms competing in a duopoly, where firms can influence demand through use of advertising. The paper simulates the strategic interaction of the two firms based on a game-theoretic Cournot analytical model. The evolution over time of the Nash equilibrium is graphically displayed for a number of different competitive scenarios. The results show that there exist threshold levels of advertising effectiveness at which duopoly behaviour bifurcates, that perfectly cooperative advertising can lead to competitive disadvantage, and that perfectly predatory advertising can lead to stagnation or losses.
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页数：16
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