Kybernetika 33 no. 6, 633-648, 1997

A dynamic model of advertising competition: an empirical analysis of feedback strategies

Petr Mariel


This paper provides an empirical framework for estimating the parameters of a differential game of advertising competition taking into account the informative and predatory contents of advertising. The estimated model is a simultaneous equations model consisting of the firms' response functions and the profit maximizing first-order conditions. Hausman's specification test is used to examine the appropriateness of the Nash equilibrium assumption for the German automobile industry market.


90B60, 90A58, 90D25, 91B24, 91A23