Optimal advertising with a continuum of goods

E. Barucci and Fausto Gozzi

Annals of Operations Research, 1999, vol. 88, issue 0, 15-29

Abstract: In this paper, we present a model of optimal advertising with a continuum of goodsdifferentiated by their vintage. The model is an infinite horizon/infinite dimensional optimalcontrol model and the firm advertises a continuum of goods. We prove that the goodwill ofa good accumulated through advertising does not necessarily reach its maximum when it islaunched onto the market: it can be a single peaked function of the good vintage. Copyright Kluwer Academic Publishers 1999

Date: 1999
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DOI: 10.1023/A:1018922128062

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