New product advertising in dynamic oligopolies

The success of the introduction of a new product in a market is very sensitive to the marketing decision variables adopted by the firm. In the present paper we are concerned with the question of new product advertising in a heterogeneous oligopoly market consisting of N firms. A dynamic game is formulated to model strategic as well as sales interactions in such a market. Optimal advertising strategies are identified as open-loop Nash solutions.The comments of two anonymous referees are appreciated. The first author wishes to acknowledge support from NSERC (Grant No. OGP0037342).