Technical Note—Advertising Models, Stochastic Games and Myopic Strategies
C. A. J. M. Dirven, O. J. Vrieze
Operations Research · 1986 · Volume 34 · Issue 4
Abstract
This paper analyzes dynamic advertising models. We present conditions that imply that the payoffs under myopic strategies are linear in the state variable, which represents the number of customers for each firm. These conditions, which determine a subclass of stochastic games, are satisfied by several dynamic advertising models. We give a criterion to check whether this model contains an equilibrium point within the class of myopic strategies that is also an equilibrium point with regard to all strategies.
Keywords
236 structured equilibrium points for dynamic games, 349 state- and period-independent advertising policies, 362 stochastic games
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