Competition for networked agents in the lottery Blotto game

摘要

This paper examines a duopoly setting in which two firms target their marketing budgets to agents embedded in a social network. Depicting the competition between two firms as a lottery Blotto game, we characterize the equilibrium marketing strategies and study how the network externality affects firms' marketing decision. Examples of networks are further provided to illustrate how the marketing strategies depend on the agents' network structures and the strength of network effect. (C) 2020 Elsevier B.V. All rights reserved.