There is strong evidence that consumers learn from their brand consumption experiences and continuously update their brand purchase probabilities. However, in explaining why established competitive brands continuously compete through periodic price promotions, most of the existing theories do...

The question as to the optimality of advertising pulsing has attracted many researchers over the last half-century. In this paper we specify a market share model in which there are two advertising-setting firms as well as a no-purchase option. The framework is that of a first-order Markov...