The sleeper effect of comparative advertising in oligopolistic markets

B-Tier
Journal: Journal of Economic Dynamics and Control
Year: 2025
Volume: 177
Issue: C

Authors (3)

Amir, Rabah (University of Iowa) Machowska, Dominika (not in RePEc) Nowakowski, Andrzej (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

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

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.

Technical Details

RePEc Handle
repec:eee:dyncon:v:177:y:2025:i:c:s0165188925000880
Journal Field
Macro
Author Count
3
Added to Database
2026-01-24