| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 1142822 | Operations Research Letters | 2008 | 4 Pages |
Abstract
We investigate a linear state differential game of advertising, under Cournot and Bertrand competition. A unique saddlepoint equilibrium exists if the marginal cost of advertising is sufficiently low. Bertrand competition entails more intense advertising than Cournot competition, since increasing market size is more important to firms when competition is tough.
Related Topics
Physical Sciences and Engineering
Mathematics
Discrete Mathematics and Combinatorics
Authors
Roberto Cellini, Luca Lambertini, Andrea Mantovani,