An Advertising Model of Duopoly with Consumer Searching

Aiming at the problem that the Tirole(1997)´s analysis of informative advertising ,with the two-phase gaming model applied to it. This paper puts forward the informative advertising model based on consumers´ information searching in which consumers have heterogeneous preferences, and consumers´ costs of information searching can influence the product price and advertising level of enterprises. In the discussion of model equilibrium, the conclusions are: when high discovery cost, in equilibrium, duopoly have the same price and advertising level will increase firstly then decrease if the reservation value increases.