creators_name: Situngkir, Hokky
type: techreport
datestamp: 2006-12-03
lastmod: 2011-03-11 08:56:42
metadata_visibility: show
title: Advertising in Duopoly Market
ispublished: pub
subjects: comp-sci-mach-dynam-sys
subjects: comp-sci-complex-theory
subjects: bio-socio
subjects: economics
subjects: socsim
subjects: soc-psy
full_text_status: public
keywords: advertising, snazjd model, majority model, duopoly market.
abstract: The paper presents the dynamics of consumer preferences over two competing products acting in duopoly market. The model presented compared the majority and minority rules as well as the modified Snazjd model in the Von Neumann neighborhood. We showed how important advertising in marketing a product is. We show that advertising should also consider the social structure simultaneously with the content of the advertisement and the understanding to the advertised product. Some theoretical explorations are discussed regarding to size of the market, evaluation of effect of the advertising, the types of the advertised products, and the social structure of which the product is marketed. We also draw some illustrative models to be  mproved as a further work.
date: 2006-11
date_type: published
institution: Bandung Fe Institute
department: Computational Sociology
refereed: TRUE
referencetext: Chang, I. (2001). "Sznajd Sociophysics Model on a Triangular Lattice". International Journal of Modern Physics C 12(10):1509-12.

Fershtman, C. and Muller, E. (1993). "The Benefits of Being Small: Duopolistic Competition with Market Segmentation". Review of Industrial Organization 8:101-11. Kluwer Academic Publishers.

Fog, A. (1999). Cultural Selection. Kluwer Academic Publisher.

Fog. A. (2004). The supposed and the real role of mass media in modern democracy. Working Paper. Published online: http://www.agner.org/cultsel/mediacrisis.pdf.

Krapivsky, P. L. and Redner, S. (2003). "Dynamics of Majority Rule in Two-State Interacting Spin Systems". Physical Review Letter 90:238701

Mobilia, M. and Redner, S. (2003). "Majority versus minority dynamics: Phase transition in an interacting two-state spin system". Physical Review E 68:046106

Nedea, S. (2003). Analysis and simulation of Catalytic Reactions. IPA Dissertation Series 2003-06. UniversiteitsDrukkerij, Eindhoven.

Prasad, A. and Sethi, S. P. (2004). "Competitive Advertising under Uncertainty: A Stochastic Differential Game Approach". Journal of Optimization Theory and Applications 123(1):163-85. Kluwer Academic Publisher.

Schulze, C. (2002). "Advertising effects in Sznajd marketing model". International Journal of Modern Physics C 14(1).

Schulze, C. (2004). "Long-range interactions in Sznajd consensus". Physica A 324(3):717-22.

Situngkir, H. and Surya, Y. (2004). Democracy at the Edge of Chaos. Working Paper Series WPQ2004. Bandung Fe Institute.

Stauffer, Dietrich (2001). "Monte Carlo simulation of Sznajd models". Journal of Artificial Societies and Social Simulation 5(1). URL: http://www.soc.surrey.ac.uk/JASSS/5/1/4

Stauffer, D. (2003). How many different parties can join one stable government?. e-print arXiv:cond-mat/0307352.

Sznajd-Weron K, and Weron R. (2003). "How effective is advertising in duopoly markets?". Physica A 324:437-44.

Suroso, R. (2003). Marketing, antara teori dan praktik. Working Paper Series WPL2003 Bandung Fe Institute.

Sznajd-Weron, K.  (2004). "On controlling simple dynamics by a disagreement function". Physical Review E 66:046131.

Wu, F. and Huberman, B. A. (2006). Social Structure and Opinion Formation. Research Paper HP-Labs. URL: http://www.hpl.hp.com/research/idl/papers/opinions/opinions.pdf
citation:   Situngkir, Hokky  (2006) Advertising in Duopoly Market.  [Departmental Technical Report]     
document_url: http://cogprints.org/5263/1/2006f.pdf