Binner, J.M., Ciardiello, F., Fletcher, L.R. et al. (1 more author) (2019) On pure-strategy Nash equilibria in a duopolistic market share model. International Game Theory Review, 21 (02). 1940007. ISSN 0219-1989
Abstract
This paper develops a duopolistic discounted marketing model with linear advertising costs and advertised prices for mature markets still in expansion. Generic and predatory advertising effects are combined together in the model. We characterize a class of advertising models with some lowered production costs. For such a class of models, advertising investments have a no-free-riding strict Nash equilibrium in pure strategies if discount rates are small. We discuss the entity of this efficiency at varying of parameters of our advertising model. We provide a computational framework in which market shares can be computed at equilibrium, too. We analyze market share dynamics for an asymmetrical numerical scenario where one of the two firms is more effective in generic and predatory advertising. Several numerical insights on market share dynamics are obtained. Our computational framework allows for different scenarios in practical applications and it is developed, thanks to Mathematica software.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2019 World Scientific Publishing. This is an author-produced version of a paper subsequently published in International Game Theory Review. Uploaded in accordance with the publisher's self-archiving policy. |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 27 Nov 2020 08:18 |
Last Modified: | 27 Nov 2020 08:35 |
Status: | Published |
Publisher: | World Scientific Publishing |
Refereed: | Yes |
Identification Number: | 10.1142/s0219198919400073 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:168462 |