How effective is advertising in duopoly markets?

TL;DR

This paper introduces an Ising spin model to analyze how advertising influences opinion spread in duopoly markets, revealing phase transitions driven by simple rules and external advertising campaigns.

Contribution

It presents a novel outward-influence Ising model for opinion dynamics in duopoly markets, differing from traditional inward influence models.

Findings

External advertising induces phase transitions in opinion states.

Simple rules combined with advertising can significantly alter market opinions.

The model captures the spread of opinions through outward influence.

Abstract

A simple Ising spin model which can describe the mechanism of advertising in a duopoly market is proposed. In contrast to other agent-based models, the influence does not flow inward from the surrounding neighbors to the center site, but spreads outward from the center to the neighbors. The model thus describes the spread of opinions among customers. It is shown via standard Monte Carlo simulations that very simple rules and inclusion of an external field -- an advertising campaign -- lead to phase transitions.