Mathematical Models in Marketing
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For a marketing situation, mathematical models are developed expressing the relation between net revenue and the variables that affect it. These models are extensions of the ones discussed by Mills, and Krishnan and Gupta. Mills assumed that each competitor has only one controllable variable, viz., promotional effort. Krishnan and Gupta obtained equilibrium solutions for two competitors, each having two controllable variables. This paper deals with multicompetitors and discusses four models when the market potential is independent of both price and promotional effort and when it is dependent on either or both of the controllable variables.
[1] Shiv K. Gupta,et al. Mathematical Model for a Duopolistic Market , 1967 .