MULTI-NEW PRODUCT COMPETITION IN DUOPOLY: A DIFFERENTIAL GAME ANALYSIS

We use a differential game approach to study some aspects of the dynamics and competition in marketing. A market is a big complex competition environment, and some of the factors that should be considered are the number of competitors, different dynamics of different products, different strategies in the different phases of product life cycles, different marketing goals, etc. In this paper a differential game model is presented to carefully analyze optimal advertising policies over finite planning horizon for two companies. Each company has different brands but similar products. The optimal competitive strategies are given by Nash equilibrium based on their different marketing goals. Numerical computations will be used to get optimal policies and dynamic curves. The numerical algorithms can be use to deal with realistic problems.