Persuasive advertising under Bertrand co
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Roberto Cellini; Luca Lambertini; Andrea Mantovani
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Article
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2008
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Elsevier Science
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English
β 219 KB
We investigate a linear state differential game of advertising, under Cournot and Bertrand competition. A unique saddlepoint equilibrium exists if the marginal cost of advertising is sufficiently low. Bertrand competition entails more intense advertising than Cournot competition, since increasing ma