Optimizing Advertising Expenditures in a Dynamic Duopoly
- 1 August 1979
- journal article
- Published by Institute for Operations Research and the Management Sciences (INFORMS) in Operations Research
- Vol. 27 (4) , 682-692
- https://doi.org/10.1287/opre.27.4.682
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.Keywords
This publication has 0 references indexed in Scilit: