When two firms advertise to attract the same customers,what are their advertising strategies

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If both firms advertise to attract the same customers, it is likely that advertising becomes a dominant strategy for them. This is because if one firm advertises and the other does not, the former will capture a larger market share and make higher profits, while the latter will lose customers and make lower profits. Therefore, both firms may choose to advertise to stay competitive and protect their market share. This can lead to a situation of advertising war, where both firms keep increasing their advertising expenditures to outdo each other, resulting in diminishing returns and higher costs.

When Two Firms Advertise to Attract the Same Customers,what Are