A Dynamic Advertising Game with Market Growth

Steffen Jørgensen, Simon Pierre Sigué

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

3 Citations (Scopus)


The paper considers a market in which two firms compete on advertising over time. Each firm can use three types of advertising: offensive advertising which attempts to attract customers from the rival firm, defensive advertising which aims at protecting a firm’s customer base from the rival’s attacks, and generic advertising to make industry sales grow. We address questions like: How should a strategy for the simultaneous use of the three types of advertising be designed? How would the resulting time paths of sales look like? The paper studies a differential game played over an infinite time horizon and provides closed-form expressions for equilibrium advertising strategies and sales rate trajectories.

Original languageEnglish
Title of host publicationDynamic Modeling and Econometrics in Economics and Finance
Number of pages15
Publication statusPublished - 2016

Publication series

NameDynamic Modeling and Econometrics in Economics and Finance
ISSN (Print)1566-0419
ISSN (Electronic)2363-8370


  • Advertising
  • Differential game
  • Lanchester-type model
  • Market growth


Dive into the research topics of 'A Dynamic Advertising Game with Market Growth'. Together they form a unique fingerprint.

Cite this