Simulation of the advertising in duopoly markets based on cellular automata

Baojun Gao · Journal of systems engineering · 2008

In view of the insufficient of the mathematical model on aggregate-level in description of individual difference aspect,a cellular automata model with heterogeneous individuals is built to simulate the effects of advertising in a duopoly market.The process of competition and diffusion be- tween two products and the influence produced by the advertisement delivery strength on diffusion re- sult are simulated under different internal influence,initial market share and market size.The simu- lation results show that advertising plays a crucial role in the duopoly markets when the difference between the products reduces.

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