Advertising Strategies in Electronic Retailing: A Differential Games Approach

dc.contributor.LCNA90649574‏ (Mookerjee, VS)
dc.contributor.authorLiu, Dengpanen_US
dc.contributor.authorKumar, Subodhaen_US
dc.contributor.authorMookerjee, Vijay S.en_US
dc.date.accessioned2014-03-20T22:43:17Z
dc.date.available2014-03-20T22:43:17Z
dc.date.created2012-09en_US
dc.description.abstractWe consider advertising problems under an information technology (IT) capacity constraint encountered by electronic retailers in a duopolistic setting. There is a considerable amount of literature on advertising games between firms, yet introducing an IT capacity constraint fundamentally changes this problem. In the presence of information processing constraints, although advertising may still cause a customer to switch, it may not result in a sale, i.e., the customer may be lost by both firms. This situation could occur when customers have a limited tolerance for processing delays and leave the website of a firm because of slow response. In such situations, attracting more traffic to a firm's site (by increasing advertising expenditure) may not generate enough additional revenue to warrant this expenditure. We use a differential game formulation to obtain closed-form solutions for the advertising effort over time in the presence of IT capacity constraints. Based on these solutions, we present several useful managerial insights.en_US
dc.identifier.bibliographicCitationLiu, Dengpan, Subodha Kumar, and Vijay S. Mookerjee. 2012. "Advertising strategies in electronic retailing: a differential games approach." Information Systems Research 23(3, pt. 2): 903-917.en_US
dc.identifier.issn1047-7047en_US
dc.identifier.issue3en_US
dc.identifier.startpage903en_US
dc.identifier.urihttp://hdl.handle.net/10735.1/3201
dc.identifier.volume23en_US
dc.relation.urihttp://dx.doi.org/10.1287/isre.1110.0377en_US
dc.rights© 2012 INFORMSen_US
dc.source.journalInformation Systems Researchen_US
dc.subjectElectronic data processingen_US
dc.subjectGame theoryen_US
dc.subjectInformation technologyen_US
dc.subjectMarketingen_US
dc.titleAdvertising Strategies in Electronic Retailing: A Differential Games Approachen_US
dc.typetexten_US
dc.type.genrearticleen_US

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