This paper explores the strategic tradeoff between advertising and pricing when firms have asymmetric loyal market segments and also can compete for shoppers who purchase at the lowest advertised price. Two advertising structures consistent with real world settings are considered. In the first...

We consider the strategic correlativity principle in strategic form games and potential games, which indicate the relationship between an arbitrary pair of players under correlated equilibria. Importantly, the strategies of a pair of players are positively correlated when their expected payoff...