A PULSING MODEL OF ADVERTISING COMPETITION - A GAME-THEORETIC APPROACH .B. EMPIRICAL APPLICATION AND FINDINGS

In part A of this study, we have theoretically established the asserti on that the subgames of alternating pulsing competition (APC) and matc hing pulsing competition (MPC) may not have saddle points at the corne rs if at least one of the firms has a convex response function (see Re sult 4 in Mesak and Calloway, 1995). In this second part, we give nume rical support to the above result and illustrate the use of linear pro gramming (LP) to solve pulsing games associated with such cases. All f indings obtained thus far are summarized afterwards within a theoretic al decisionmaking framework. We also report the results of an empirica l investigation aimed at estimating the Lanchester model in a duopolis tic setting. Finally, we shed light on the lessons learned from the en tire study and highlight possible directions for future research.