Optimal Advertising and Pricing in a New-Product Adoption Model

Suresh Sethi, A. Prasad () and X. He ()
Additional contact information
A. Prasad: University of Texas at Dallas
X. He: University of North Carolina at Charlotte

Journal of Optimization Theory and Applications, 2008, vol. 139, issue 2, No 9, 360 pages

Abstract: Abstract A model of new-product adoption is proposed that incorporates price and advertising effects. An optimal control problem that uses the model as its dynamics is solved explicitly to obtain the optimal price and advertising effort over time. The model has a great potential to be used in obtaining solutions and insights in a variety of differential game settings.

Keywords: Durable goods sales; Advertising; Pricing; Optimal control; Dynamic programming (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (29)

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DOI: 10.1007/s10957-008-9472-5

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