Markov Perfect Equilibrium Advertising Strategies of Lanchester Duopoly Model: A Technical Note

We propose a numerical approach to compute stationary Markov perfect Nash equilibrium advertising strategies of the Lanchester model. The algorithm can be implemented using a standard mathematical package, and, importantly, it does not require that the players discount their future earnings at a zero rate, an assumption that has been made in the literature.

• 저널Management Science · 50(7) · 995–1000
• 토픽Merger and Competition Analysis · Economics and Econometrics
• DOI10.1287/mnsc.1040.0249
• 저자Ramla Jarrar, Guiomar Martín‐Herrán, Georges Zaccour