THE IMPACT OF ADVERTISING IN A DUOPOLY GAME

被引:10
作者
Schoonbeek, Lambert [1 ]
Kooreman, Peter [2 ]
机构
[1] Univ Groningen, Dept Econ & Econometr, POB 800, NL-9700 AV Groningen, Netherlands
[2] Tilburg Univ, Dept Econ, NL-5000 LE Tilburg, Netherlands
关键词
Advertising; differentiated duopoly; profits; advertising ban;
D O I
10.1142/S0219198907001606
中图分类号
O1 [数学];
学科分类号
0701 ; 070101 ;
摘要
We investigate the impact of advertising in a static differentiated duopoly. First, we consider the Nash equilibrium if firms compete with both prices and advertising. Second, we examine the Nash equilibrium if firms only compete in prices and do not advertise. We characterize the circumstances in which the profit, output, and/or price of each firm is greater (or smaller) with advertising than without advertising.
引用
收藏
页码:565 / 581
页数:17
相关论文
共 11 条