Journal article
The sleeper effect of comparative advertising in oligopolistic markets
Journal of economic dynamics & control, Vol.177, 105122
08/2025
DOI: 10.1016/j.jedc.2025.105122
Abstract
This research deals with comparative advertising strategies of firms in an oligopolistic market in the presence of the sleeper effect, through the lens of a differential game with time delay. We examine the open-loop Nash equilibrium and, for its validation, propose a new verification theorem that determines if a given strategy profile constitutes a Nash equilibrium. Our results reveal how the sleeper effect influences the equilibrium of comparative advertising strategies across two decision-making periods. Moreover, we highlight how market factors and firm attributes can significantly affect these strategies and derive conditions under which a firm will abstain from such strategies. Overall, our study provides novel insights into how market dynamics, firm attributes, and the sleeper effect interact in shaping comparative advertising strategies.
Details
- Title: Subtitle
- The sleeper effect of comparative advertising in oligopolistic markets
- Creators
- Rabah Amir - University of IowaDominika Machowska - University of WarsawAndrzej Nowakowski - University of Łódź
- Resource Type
- Journal article
- Publication Details
- Journal of economic dynamics & control, Vol.177, 105122
- DOI
- 10.1016/j.jedc.2025.105122
- ISSN
- 0165-1889
- eISSN
- 1879-1743
- Publisher
- Elsevier; AMSTERDAM
- Language
- English
- Electronic publication date
- 05/19/2025
- Date published
- 08/2025
- Academic Unit
- Economics
- Record Identifier
- 9984824323502771
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