Allocating marketing resources over social networks: A long-term analysis

Abstract : In this paper, we consider a network of consumers who are under the combined influence of their neighbors and external influencing entities (the marketers). The consumers' opinion follows a hybrid dynamics whose opinion jumps are due to the marketing campaigns. By using the relevant static game model proposed recently in [1], we prove that although the marketers are in competition and therefore create tension in the network, the network reaches a consensus. Exploiting this key result, we propose a coopetition marketing strategy which combines the one-shot Nash equilibrium actions and a policy of no advertising. Under reasonable sufficient conditions, it is proved that the proposed coopetition strategy profile Pareto-dominates the one-shot Nash equilibrium strategy. This is a very encouraging result to tackle the much more challenging problem of designing Pareto-optimal and equilibrium strategies for the considered dynamical marketing game.
Document type :
Journal articles
Complete list of metadatas

Cited literature [12 references]  Display  Hide  Download

https://hal.archives-ouvertes.fr/hal-02390680
Contributor : Irinel-Constantin Morarescu <>
Submitted on : Tuesday, December 3, 2019 - 11:16:48 AM
Last modification on : Wednesday, January 8, 2020 - 1:33:11 AM

File

root.pdf
Files produced by the author(s)

Identifiers

Citation

Vineeth Varma, Samson Lasaulce, Julien Mounthanyvong, Irinel-Constantin Morarescu. Allocating marketing resources over social networks: A long-term analysis. IEEE Control Systems Letters, IEEE, 2019, 3 (4), pp.1002-1007. ⟨10.1109/LCSYS.2019.2919959⟩. ⟨hal-02390680⟩

Share

Metrics

Record views

22

Files downloads

26