Banerjee, Bibek; Bandyopadhyay, Subir - In: Marketing Science 22 (2003) 1, pp. 131-144
We construct a multistage game-theoretic model of advertising and price competition in a differentiated products duopoly, in which proportions of consumers exhibit latent inertia in favor of repeat purchase. Advertising simultaneously plays the dual role in reducing such inertia through...