Integrating Advertising into Duopoly Simulations for Intermediate Microeconomics Courses Using Python
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October 3, 2024This paper proposes incorporating advertising as a decision variable in price competition models of duopolies in undergraduate microeconomic theory courses. We use Python, which allows students to explore various scenarios with minimal coding and focus on fostering an intuitive understanding. This saves classroom time from solving complex models that would be difficult to solve algebraically. We demonstrate the approach using a baseline price competition model with advertising. We then showcase how Python helps explore variations in factors such as the price elasticity of demand, the advertising elasticity of demand, and marginal cost. We believe that this activity allows students to gain a deeper understanding of market competition with advertising, which reflects a crucial aspect of real-world competition.
by Masanori Kuroki
Kuroki, M. (2025). Integrating Advertising into Duopoly Simulations for Intermediate Microeconomics Courses Using Python. Journal of Economics Teaching, 10(4), 308-320. DOI: 10.58311/jeconteach/73359d691c4b63156842af299030f00ad61ab5af
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