Pure-strategy Nash equilibria in an advertising game with interference.

*(English)*Zbl 1237.91072Summary: Two manufacturers produce substitutable goods for a homogeneous market. The advertising efforts of the two manufacturers determine the demand for the goods and interfere negatively with each other. The demand of each good is a piecewise linear function of the product goodwill, and the latter is a linear function of advertising efforts. In a game with two competing profit-maximizing manufacturers who have access to a set of several advertising media, the pure-strategy Nash equilibria are characterized and their existence is shown.

##### Keywords:

game theory; marketing; non-cooperative games; advertising; Nash equilibrium; nonsmooth optimization
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\textit{B. Viscolani}, Eur. J. Oper. Res. 216, No. 3, 605--612 (2012; Zbl 1237.91072)

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