Differential Games in MarketingGame theory has proven useful to represent and conceptualize problems of conflict and cooperation in a formal way, and to predict the outcome of such situations. Differential games are dynamic games that are particularly designed to study systems where observations and decisions are made in real time. The book conveys to the reader the state of the art of research in marketing applications of differential game theory. This research started about 25 years ago and the literature has now reached an extent and a maturity that makes it natural to take stock. The book deals with differential games in advertising, pricing, and marketing channels, as well as with marketing-production and pricing-advertising interfaces. It provides also a tutorial on main concepts in differential games. |
Contents
INTRODUCTION | 1 |
A BRIEF TUTORIAL ON DIFFERENTIAL GAMES | 5 |
ADVERTISING MODELS | 29 |
PRICING MODELS | 65 |
MODELS OF MARKETING CHANNELS | 101 |
OTHER APPLICATIONS | 129 |
CONCLUSIONS | 153 |
References | 161 |
| 171 | |
| 173 | |
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Common terms and phrases
advertising costs advertising efforts advertising rates advertising strategies assumption brand image competition concave Consider consumer price coordination cost learning costate equations cumulative sales decision decreasing demand function demand learning denote differential equations differential game Dockner and Jørgensen duopolistic duopoly dynamic games Eliashberg equilibrium advertising equilibrium price equilibrium strategies Erickson evolves according Feichtinger firm's franchisees Fruchter Gaimon game theory given goodwill stock Hamilton-Jacobi-Bellman equations Hamiltonian incentive strategies increase inventory Jeuland Journal Kalish Lanchester model leader linear Management Science manufacturer manufacturer's market share marketing channel Marketing Science Markovian strategies maximize monopolist myopic Nash equilibrium Nerlove-Arrow noncooperative objective functionals oligopolistic oligopoly OLNE open-loop strategy Operational Research optimal control problem Optimal Pricing payoff pi(t player positive constants price and advertising pricing strategies product diffusion models promotion rate of firm result retailer retailer's sales rate salvage value setup si(t solution Stackelberg subgame subsidy transfer price unit production cost variable xi(t