The existing marketing literature suggests that persuasive advertising elicits counteractions from competing manufacturers and consequently leads to wasteful cancellation of the advertising effects. Thus, persuasive advertising is widely perceived to be combative in nature. A series of...

This paper shows that the analysis of Liu et al. (2004) contains a substantive error—the asserted pure-strategy Nash equilibrium leading to their Theorems 1 and 2 is really not an equilibrium. We show that in their model, either pure-strategy Nash equilibria do not exist or, unlike their...