Spatial Advertisement Competition: Based on Game Theory
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. Th...
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| Format: | Article |
| Language: | English |
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Wiley
2014-01-01
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| Series: | Journal of Applied Mathematics |
| Online Access: | http://dx.doi.org/10.1155/2014/216193 |
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| _version_ | 1832568120334614528 |
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| author | Zheng-xun Tan |
| author_facet | Zheng-xun Tan |
| author_sort | Zheng-xun Tan |
| collection | DOAJ |
| description | 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. |
| format | Article |
| id | doaj-art-fe86b67806bf4c31a4c667a09aa20050 |
| institution | Kabale University |
| issn | 1110-757X 1687-0042 |
| language | English |
| publishDate | 2014-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Journal of Applied Mathematics |
| spelling | doaj-art-fe86b67806bf4c31a4c667a09aa200502025-02-03T00:59:45ZengWileyJournal of Applied Mathematics1110-757X1687-00422014-01-01201410.1155/2014/216193216193Spatial Advertisement Competition: Based on Game TheoryZheng-xun Tan0Department of Finance, Jinan University, Guangzhou 510632, ChinaSince 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.http://dx.doi.org/10.1155/2014/216193 |
| spellingShingle | Zheng-xun Tan Spatial Advertisement Competition: Based on Game Theory Journal of Applied Mathematics |
| title | Spatial Advertisement Competition: Based on Game Theory |
| title_full | Spatial Advertisement Competition: Based on Game Theory |
| title_fullStr | Spatial Advertisement Competition: Based on Game Theory |
| title_full_unstemmed | Spatial Advertisement Competition: Based on Game Theory |
| title_short | Spatial Advertisement Competition: Based on Game Theory |
| title_sort | spatial advertisement competition based on game theory |
| url | http://dx.doi.org/10.1155/2014/216193 |
| work_keys_str_mv | AT zhengxuntan spatialadvertisementcompetitionbasedongametheory |