Article ID: | iaor20125678 |
Volume: | 23 |
Issue: | 3-Part-2 |
Start Page Number: | 903 |
End Page Number: | 917 |
Publication Date: | Sep 2012 |
Journal: | Information Systems Research |
Authors: | Kumar Subodha, Liu Dengpan, Mookerjee Vijay S |
Keywords: | marketing, management, computers: information, retailing, game theory, e-commerce |
We consider advertising problems under an information technology (IT) capacity constraint encountered by electronic retailers in a duopolistic setting. There is a considerable amount of literature on advertising games between firms, yet introducing an IT capacity constraint fundamentally changes this problem. In the presence of information processing constraints, although advertising may still cause a customer to switch, it may not result in a sale, i.e., the customer may be lost by