Title :
Profit maximization through advertising: A nonzero sum differential game approach
Author :
Leitmann, G. ; Schmitendorf, W.E.
Author_Institution :
University of California, Berkeley, CA, USA
fDate :
8/1/1978 12:00:00 AM
Abstract :
This paper deals with the problem of the competition between two firms who sell substitutable products. Each firm wants to maximize its own profits. A firm\´s share of the market is influenced by its advertising and the advertising of its competitor. The problem is modeled as a nonzero sum differential game. Various solution concepts are applied and the corresponding "optimal" advertising rates obtained.
Keywords :
Business economics; Differential games; Advertising; Costs; Economic indicators; Marketing and sales; Mechanical engineering; Upper bound;
Journal_Title :
Automatic Control, IEEE Transactions on
DOI :
10.1109/TAC.1978.1101794
