We analyze optimal advertising spending in a duopolistic market where each firm's market share depends on its own and its competitor''s advertising decisions, and is also subject to stochastic disturbances. We develop a differential game model of advertising in which the dynamic behavior is...

We analyze the strategic behavior of firms when demand is determined by a rule of thumb behavior of consumers. We assume consumer dynamics where individual consumers follow simple behavioral decision rules governed by imitation and habit as suggested in consumer research. On this basis, we...

In this paper we characterize the feedback equilibrium of a general infinite-horizon Stackelberg-Nash differential game where the roles of the players are mixed. By mixed we mean that one player is a leader on some decisions and a follower on other decisions. We prove a verification theorem that...

Cooperative advertising is an important mechanism used by manufacturers to influence retailers' promotional decisions. In a typical arrangement, the manufacturer agrees to reimburse a fraction of a retailer's advertising cost, known as the subsidy rate. We consider a case of new product adoption...

Stackelberg differential game models have been used to study sequential decision making in non-cooperative games in diverse fields. In this paper, we survey recent applications of Stackelberg differential game models to the supply chain management and marketing channels literatures. A common...

A nearly explicit feedback Stackelberg-Nash equilibrium is obtained in a dynamic distribution channel consisting of a manufacturer and two competing asymmetric retailers engaged in promoting the manufacturer's product to be sold through the retailers. The manufacturer decides on its support for...

Over the last two decades, differential game (DG) models have been used extensively to study such issues in dynamic environments as competitive advertising and pricing for new products in the marketing literature, capacity investments in the energy industry, government's subsidy policy in new...

This study investigates the strategic effect of return policies in a dual-channel supply chain, in which a manufacturer can sell products directly to end customers and indirectly via an independent retailer. The manufacturer decides whether to implement a return policy in either the direct or...

The advertising efforts in social networks grow every year. Since their appearance in the late 1990s Social Network Web Sites were considered as a uniform group. The only differentiation factors were the number of users and the amount of traffic passed through the site. This paper classifies the...

Collaboration among sizeable competitors is usually considered to be harmful to social welfare while competition among such competitors is perceived the better, or even best, mode of operation. We examine industries where the goods produced are homogeneous and producers employ advertising in...