Markov Perfect Equilibrium Advertising Strategies of Lanchester Duopoly Model: A Technical Note
Ramla Jarrar, Guiomar Martín-Herrán, Georges Zaccour
Management Science · 2004 · Volume 50 · Issue 7
Abstract
We propose a numerical approach to compute stationary Markov perfect Nash equilibrium advertising strategies of the Lanchester model. The algorithm can be implemented using a standard mathematical package, and, importantly, it does not require that the players discount their future earnings at a zero rate, an assumption that has been made in the literature.
Keywords
Lanchester model, advertising strategies, Markov perfect Nash equilibrium
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