Semnan University Press Journal of Modeling in Engineering 2008-4854 17 59 2019 12 22 Development of a dynamic game theory model for analyzing competition in the oligopoly markets (Feedback Approach) Development of a dynamic game theory model for analyzing competition in the oligopoly markets (Feedback Approach) 263 276 4186 10.22075/jme.2019.17449.1702 FA Marjan Raoufinia Industrial Engineering, Islamic Azad University, Tehran North Branch Vahid Baradaran Industrial Engineering Department, Engineering Faculty, Islamic Azad University, Tehran North Branch, Tehran, Iran Reza Shahrjerdi Department of Industrial, Mechanical and Aerospace Engineering,Buein Zahra Technical University, Buein Zahra, Qazvin, Iran Journal Article 2019 05 07 Privatization has led to the formation dynamic competition in markets, such as airline service providers with a limited number of suppliers and a large number of customers (oligopoly markets). Suppliers of goods and services in these markets are considering the behavior of competitors to determine the amount of products and advertisements in order to maximize their benefits. This paper investigates a differential oligopoly game model under feedback structures. By applying mathematical validation of the optimal levels of production (supply) and advertising cost, the proposed model shows that parameters such as sticky price, substitutability among goods and advertising promotional efficiency on supply and advertising are effective in achieving sustainable equilibrium in such markets. The results of simulations show that in the feedback structures with increasing sticky prices, the optimal supply and promotions are upward. But with the increase in the degree of replacement of a product or service in the market, the optimal amount of supply and advertising is decreasing, as well as the reduction of advertising efficiency, the financial burden of advertising activities that in order to create a level of equilibrium in the market, the amount of optimal supply and advertising has a decreasing trend. Privatization has led to the formation dynamic competition in markets, such as airline service providers with a limited number of suppliers and a large number of customers (oligopoly markets). Suppliers of goods and services in these markets are considering the behavior of competitors to determine the amount of products and advertisements in order to maximize their benefits. This paper investigates a differential oligopoly game model under feedback structures. By applying mathematical validation of the optimal levels of production (supply) and advertising cost, the proposed model shows that parameters such as sticky price, substitutability among goods and advertising promotional efficiency on supply and advertising are effective in achieving sustainable equilibrium in such markets. The results of simulations show that in the feedback structures with increasing sticky prices, the optimal supply and promotions are upward. But with the increase in the degree of replacement of a product or service in the market, the optimal amount of supply and advertising is decreasing, as well as the reduction of advertising efficiency, the financial burden of advertising activities that in order to create a level of equilibrium in the market, the amount of optimal supply and advertising has a decreasing trend. https://modelling.semnan.ac.ir/article_4186_713e0b7ef40af6a0121d269ba8efeab5.pdf