How does a firm‘s advertising expenditure depend on the inherent asymmetry in product quality?

Authors

  • Hao Ling
  • Aibo Fang

DOI:

https://doi.org/10.61173/f20mtj85

Keywords:

Oligopoly, Maximize benefit, Advertising expenditure

Abstract

The paper mainly wants to explore and explain the proportion of money and time spent by the two companies in the oligopoly on marketing, promoting their products, and advertising. To make one side benefit and worsen the other side. This work hopes to use formulas and calculations to deduce how much a company will spend on publicity and advertising to maximize its interests in oligopolistic competition.

References

[1] Wang, Q., & Wu, Z. (2001). Duopolistic model of dynamic competitive advertising. ResearchGate; Elsevier. https://www. researchgate.net/publication/222380930_Duopolistic_model_ of_dynamic_competitive_advertising

[2] Lu, J. (2017). Study of Informative Advertising Competition Model in Duopolistic Market with Relative Profit Object. 10(02), 105–111. https://doi.org/10.4236/jssm.2017.102009

[3] Romualdas Ginevičius, & Algirdas Krivka. (2008). APPLICATION OF GAME THEORY FOR DUOPOLY MARKET ANALYSIS. 9(3), 207–217. https://doi. org/10.3846/1611-1699.2008.9.207-217

[4] Gehlbach, S. (2021). Formal Models of Domestic Politics. https://doi.org/10.1017/9781108674720

Downloads

Published

2024-02-19

Issue

Vol. 2 No. 1 (2024): Volume 2, Issue 1

Section

Articles

License

Copyright (c) 2024 by the authors.

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.