Abstract

The conditions of existences and determination of equilibrium solution of duopoly is investigated taking into account additional costs of enterprises for advertising products. It is assumed that above costs are aimed at increasing the base price and do not affect competitive discounts. The aim of this article is investigation on the basis of firm theory the conditions of marketing policy effectiveness and finding the conditions of equilibrium solution of duopoly existence. In line with the classical theory of the firm, it is considered that the demand function linearly depends on the summary volumes of these goods, delivered from both enterprises. For accounting of marketing activity it is assumed that product prices are in directly dependence on amount of advertising investment.It is supposed that above costs lead to an increase in the price of the enterprises products. The expediency of advertising costs is based and influence of marketing policy of enterprises on possibility of oligopoly equilibrium solutions existence has been substantiated. Based on the developed model of duopoly, we identified optimal plans for production by each of the enterprises in the duopoly and optimal levels of advertising costs, maximizing the profits of enterprises. They define equilibrium solutions according to the Cournot (when enterprises decide to release products simultaneously and independently of each other) and according to the Stackelberg (when one manufacturer believes that the competitor will behave as a Cournot duopolist). Numerical illustration of the obtained results is given. It is shown on some examples that above mentioned costs lied up to increasing of profits of these enterprises. In the future, it is possible to perform different generalizations of results, given in the present article, for example, to study oligopolies of supply chains of different configurations and dynamic models of optimization of production plans and marketing activity of enterprises-manufacturers. The obtained results could be used in the process of joint development of marketing, logistic and innovation strategies of enterprises.

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