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Stable Marketing Cooperation in a Differential Game for an Oligopoly

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  • Mario A. García-Meza

    (Facultad de Economía, Contaduría y Administración, Universidad Juárez del Estado de Durango, Fanny Anitua y Priv. de la Loza s/n, Durango, Durango 34000, México)

  • Ekaterina Viktorovna Gromova

    (Faculty of Applied Mathematics and Control Processes, St. Petersburg State University, Universitetskii Prospekt 35, Petergof, Saint Petersburg 198504, Russia)

  • José Daniel López-Barrientos

    (Facultad de Ciencias Actuariales, Universidad Anáhuac México, Campus Norte, Av. Universidad Anáhuac, 46, Col. Lomas Anáhuac, Huixquilucan, Edo. de México 52786, México)

Abstract

In this paper, we develop a dynamic model of an oligopoly playing an advertising game of goodwill accumulation with random terminal time. The goal is to find a cooperative solution that is time-consistent, considering a dynamic accumulation of goodwill with depreciation for a finite number of firms.

Suggested Citation

  • Mario A. García-Meza & Ekaterina Viktorovna Gromova & José Daniel López-Barrientos, 2018. "Stable Marketing Cooperation in a Differential Game for an Oligopoly," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 20(03), pages 1-18, September.
    • Handle: RePEc:wsi:igtrxx:v:20:y:2018:i:03:n:s0219198917500281
    DOI: 10.1142/S0219198917500281
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    References listed on IDEAS

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    1. Reynolds, Stanley S., 1991. "Dynamic oligopoly with capacity adjustment costs," Journal of Economic Dynamics and Control, Elsevier, vol. 15(3), pages 491-514, July.
    2. Gromova, Ekaterina V. & Tur, Anna V. & Balandina, Lidiya I., 2016. "A game-theoretic model of pollution control with asymmetric time horizons," Conference Papers 11933, Graduate School of Management, St. Petersburg State University.
    3. Petrosjan, Leon & Zaccour, Georges, 2003. "Time-consistent Shapley value allocation of pollution cost reduction," Journal of Economic Dynamics and Control, Elsevier, vol. 27(3), pages 381-398, January.
    4. Jørgensen, Steffen & Gromova, Ekaterina, 2016. "Sustaining cooperation in a differential game of advertising goodwill accumulation," European Journal of Operational Research, Elsevier, vol. 254(1), pages 294-303.
    5. repec:bla:econom:v:51:y:1984:i:23:p:271-81 is not listed on IDEAS
    6. Ekaterina Viktorovna Gromova & José Daniel López-Barrientos, 2016. "A Differential Game Model for The Extraction of Nonrenewable Resources with Random Initial Times — The Cooperative and Competitive Cases," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 18(02), pages 1-19, June.
    7. Frank M. Bass & Anand Krishnamoorthy & Ashutosh Prasad & Suresh P. Sethi, 2005. "Generic and Brand Advertising Strategies in a Dynamic Duopoly," Marketing Science, INFORMS, vol. 24(4), pages 556-568, February.
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    Cited by:

    1. Mario Alberto García-Meza, 2021. "The Cost of Work Discrimination: A Market Capture Differential Game Model," Mathematics, MDPI, vol. 9(19), pages 1-10, September.

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