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
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Fershtman, Chaim; Mahajan, Vijay; and Muller, Eitan, "Advertising, Pricing and Stability in Oligopolistic Markets for New Products" (1983). Historical Working Papers. 54.