Models of market strategy are examined to determine the effect a firm's goodwill might have on the introduction of new products. Modeling is based on assumptions that products are essentially non-durable, that goodwill is generated by advertising, and production costs are the same, and that firms are generally equal in discounting profits and have similar objectives.
collusion, interdependence, non-price competition, goodwill, Nerlove-Arrow capital accumulation equation, Nash equilibrium, marketing strategy, competitive behavior, coordination, game theory
The files in this collection are protected by copyright law. No commercial reproduction or distribution of these files is permitted without the written permission of Southern Methodist University, Cox Business School. These files may be freely used for educational purposes, provided they are not altered in any way, and Southern Methodist University is cited. For more information, contact email@example.com.
Fershtman, Chaim; Mahajan, Vijay; and Muller, Eitan, "Advertising, Pricing and Stability in Oligopolistic Markets for New Products" (1983). Working Papers. 54.