jump to navigation

Promotions are mixed strategies June 12, 2007

Posted by jyu in Qualifying.
trackback

Generalizations:

  1. Competitive promotions are mixed strategies
  2. Depth of promotion has a bimodal distribution (on more limited data)

Competitive promotions are mixed strategies:

  • First an empirical regularity is established that promotions are independent across competitors.
  • This regularity is then elaborated on in the context of a promotion game
  • The promotion game is linked to observable outcomes, and a classification of possible situations is developed.  In particular, the classification includes the prisoners’ dilemma, battle of the sexes, and marketing models of promotion competition
  • The evidence for the generalization comes from a variety of product markets, spanning trade promotions, retail price reductions and retail promotions such as advertised specials.  The product markets include coffee, baby diapers, toilet tissue, saltines, dishwashing fluid, ketchup and detergents among others
Advertisements

Comments»

No comments yet — be the first.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: