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Advertising in Duopoly Market


  • Situngkir, Hokky


The paper presents the dynamics of consumer preferences over two competing products acting in duopoly market. The model presented compared the majority and minority rules as well as the modified Snazjd model in the Von Neumann neighborhood. We showed how important advertising in marketing a product is. We show that advertising should also consider the social structure simultaneously with the content of the advertisement and the understanding to the advertised product. Some theoretical explorations are discussed regarding to size of the market, evaluation of effect of the advertising, the types of the advertised products, and the social structure of which the product is marketed. We also draw some illustrative models to be improved as a further work.

Suggested Citation

  • Situngkir, Hokky, 2006. "Advertising in Duopoly Market," MPRA Paper 885, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:885

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    References listed on IDEAS

    1. Sznajd-Weron, K. & Weron, R., 2003. "How effective is advertising in duopoly markets?," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 324(1), pages 437-444.
    2. Christian Schulze, 2002. "Advertising effects in Sznajd marketing model," Papers cond-mat/0207181,
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    Cited by:

    1. Situngkir, Hokky, 2010. "Landscape in the Economy of Conspicuous Consumptions," MPRA Paper 22948, University Library of Munich, Germany.

    More about this item


    advertising; snazjd model; majority model; duopoly market;

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques

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