Momentum in dynamic contests

C-Tier
Journal: Economic Modeling
Year: 2018
Volume: 70
Issue: C
Pages: 401-416

Authors (2)

de Roos, Nicolas (University of Sydney) Sarafidis, Yianis (not in RePEc)

Score contribution per author:

0.505 = (α=2.02 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We consider a two-player advertising race subject to momentum. Momentum is modeled as a complementarity between current and past campaign spending in a way that is reminiscent of models of addiction and habit formation: the more effective a player’s past spending has been, the more effective her future spending will be. For symmetric races in which the effectiveness of spending is of the Cobb-Douglas form, we derive analytic solutions for the equilibrium path. Our theory rationalizes alternative campaign strategies including aggressive openings and the development of a warchest for a final campaign assault.

Technical Details

RePEc Handle
repec:eee:ecmode:v:70:y:2018:i:c:p:401-416
Journal Field
General
Author Count
2
Added to Database
2026-01-25