Arbeitspapier
Persuasive Advertising in Oligopoly: A Linear State Differential Game
We investigate a linear state differential oligopoly game with advertising, under either Cournot or Bertrand competition. We show that a unique saddlepoint equilibrium exists in both cases if the marginal cost of advertising is sufficiently low. Then, we prove that Bertrand competition entails more intense advertising than Cournot competition. This is due to the fact that enhancing reservation prices is more relevant to firms when market competition is tougher. Ultimately, this may entail that Cournot outperforms Bertrand when it comes to social welfare.
- Language
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Englisch
- Bibliographic citation
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Series: Quaderni - Working Paper DSE ; No. 564
- Classification
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Wirtschaft
- Subject
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Oligopol
Werbung
Spieltheorie
- Event
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Geistige Schöpfung
- (who)
-
Cellini, Roberto
Lambertini, Luca
Mantovani, Andrea
- Event
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Veröffentlichung
- (who)
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Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)
- (where)
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Bologna
- (when)
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2006
- DOI
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doi:10.6092/unibo/amsacta/4723
- Handle
- Last update
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10.03.2025, 11:42 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Cellini, Roberto
- Lambertini, Luca
- Mantovani, Andrea
- Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)
Time of origin
- 2006
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Workers' Enterprises Are Not Perverse: Differential Oligopoly Games with Sticky Price
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Identifying Reaction Functions in Differential Oligopoly Games
Differential Games and Oligopoly Theory: An Overview
On the Feedback Solution of a Differential Oligopoly Game with Hyperbolic Demand and Capacity Accumulation
Oligopoly with Hyperbolic Demand: A Differential Game Approach
Capital Accumulation and Horizontal Mergers in Differential Oligopoly Games
Oligopoly with Hyperbolic Demand and Capital Accumulation
A Differential Oligopoly Game with Differentiated Goods and Sticky Prices
Advertising in a Differential Game of Spatial Competition
Managerial delegation in a dynamic renewable resource oligopoly
Workers' Enterprises Are Not Perverse: Differential Oligopoly Games with Sticky Price
Advertising in a Differential Oligopoly Game
Advertising with Spillover Effects in a Differential Oligopoly Game With Differentiated Goods
Identifying Reaction Functions in Differential Oligopoly Games
Differential Games and Oligopoly Theory: An Overview
On the Feedback Solution of a Differential Oligopoly Game with Hyperbolic Demand and Capacity Accumulation
Oligopoly with Hyperbolic Demand: A Differential Game Approach
Capital Accumulation and Horizontal Mergers in Differential Oligopoly Games
Oligopoly with Hyperbolic Demand and Capital Accumulation
A Differential Oligopoly Game with Differentiated Goods and Sticky Prices
Advertising in a Differential Game of Spatial Competition
Managerial delegation in a dynamic renewable resource oligopoly