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


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