A Microeconomic Model of the Effects of Advertising

In the study of consumer behavior, economics and marketing may perhaps seem headed on divergent paths. Economic models of man typically appear deterministic, while marketing models of man often are stochastic. This article links the microeconomic theory of demand (in a oligopoly situation) to a simple stochastic model of consumer behavior and, with data for one product, compares the empirical success of that model with those of various other models found in the literature.