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Strategic Interaction With Multiple Tools: A New Empirical Model Author info | Abstract | Publisher info | Download info | Related research | Statistics Richards, Timothy J.
Patterson, Paul M.
The Lanchester model of strategic interaction typically considers only two-firm rivalry and one strategic tool. This paper presents an alternative that considers rivalry among several firms using multiple tools. Marketing decisions are dynamically optimal and use equations of motion for market share that are consistent with optimal consumer choice. Using a single-market case study that consists of five years of monthly data on ready to eat cereal sales, advertising, product development investments and new product introductions, we test our model against a similar Lanchester specification. Non-nested specification tests fail to reject the proposed model, but reject the Lanchester alternative.
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Paper provided by Arizona State University, Morrison School of Agribusiness and Resource Management in its series Working Papers with number
28545.
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Date of creation: 2002Date of revision:
Handle: RePEc:ags:asumwp:28545Contact details of provider: Phone: (480) 727-1585 Email: Web page: http://www.east.asu.edu/msabr More information through EDIRC
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Keywords: advertising ; brands ; cereal ; dynamic ; Lanchester ; oligopoly ; strategic interaction. ; Marketing ; References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.:
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