Journal of Applied Mathematics

  • J. Appl. Math.
  • Volume 2014, Special Issue (2013), Article ID 216193, 5 pages.

Spatial Advertisement Competition: Based on Game Theory

Zheng-xun Tan

Full-text: Open access

Abstract

Since advertisement is an important strategy of firms to improve market share, this paper highlights duopoly advertisement under the Hotelling model. A model of advertisement under spatial duopoly is established, and corresponding effects of brand values and transportation costs are all captured. This study presents the proportion of sales revenue spending on advertisement. The condition for free-rider in advertisement investment is discussed. Under firms with the identical brand values, if firms' advertisement points to corresponding consumers, price and advertisement investment are all reduced. Therefore, advertisement is discussed under spatial competition in this work.

Article information

Source
J. Appl. Math., Volume 2014, Special Issue (2013), Article ID 216193, 5 pages.

Dates
First available in Project Euclid: 1 October 2014

Permanent link to this document
https://projecteuclid.org/euclid.jam/1412177640

Digital Object Identifier
doi:10.1155/2014/216193

Mathematical Reviews number (MathSciNet)
MR3178954

Zentralblatt MATH identifier
07010573

Citation

Tan, Zheng-xun. Spatial Advertisement Competition: Based on Game Theory. J. Appl. Math. 2014, Special Issue (2013), Article ID 216193, 5 pages. doi:10.1155/2014/216193. https://projecteuclid.org/euclid.jam/1412177640


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