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We present an analysis of advertising activities in a dynamic oligopoly withdifferentiated goods by differential game approach under general demand andcost functions. Mainly we show the following results. The comparison of theopen-loop solution and that of the closed-loop solution depends on whether theoutputs of the firms are strategic substitutes or strategic complements, andthe memoryless closed-loop solution and the feedback solution are equivalentwhen there is no spillover effect of advertising activities.

Advertising in an oligopoly with differentiated goods under general demand and cost functions: A differential game approach