| Authors and Corporations: | |
|---|---|
| In: | Marketing Science, 12, 1993, 1, p. 88-102 |
| published: |
Institute of Management Sciences
|
| Media Type: | Article, E-Article |
| Physical Description: | 88-102 |
|---|---|
| ISSN: |
0732-2399
1526-548X |
| published in: | Marketing Science |
| Language: | English |
| Collection: | sid-55-col-jstoras4 sid-55-col-jstorbusiness1archive sid-55-col-jstorbusiness JSTOR Arts & Sciences IV Archive JSTOR Business I Archive JSTOR Business & Economics |
<p>Given that firms pulse in advertising, should firms pulse in or out of phase? It is shown that out of phase maximizes the oligopoly profits and is also the Markov perfect equilibrium of the infinite horizon game. The basic intuition for this result comes from the following fact: it is more profitable to increase consideration when the competitor's consideration is lower. Evidence from several product categories seems to support this theoretical result.</p> |