Quality and the diffusion of innovations

Fouad El Ouardighi; Charles S. Tapiero

doi:10.1016/s0377-2217(97)00158-6

Quality and the diffusion of innovations

Fouad El Ouardighi, Charles S. Tapiero

Finance and Risk Engineering

Research output: Contribution to journal › Article › peer-review

Abstract

In this paper, we solve the problem of optimal control of products diffusion by quality in a context of monopolistic competition. To do so, we introduce a dynamic demand function leaning on two hypotheses: first, price acts a signal of quality; second, demand is more sensitive to quality than to price. Using the maximum principle of Pontryagin, we then characterize the optimal dynamic trajectory of quality and its qualitative properties.

Original language	English (US)
Pages (from-to)	31-38
Number of pages	8
Journal	European Journal of Operational Research
Volume	106
Issue number	1
DOIs	https://doi.org/10.1016/s0377-2217(97)00158-6
State	Published - Apr 1 1998

Keywords

Diffusion
Innovation
Optimal control
Product planning
Quality

ASJC Scopus subject areas

General Computer Science
Modeling and Simulation
Management Science and Operations Research
Information Systems and Management

Access to Document

10.1016/s0377-2217(97)00158-6

Cite this

@article{941fbde863b647d18bc32e6ac336f448,

title = "Quality and the diffusion of innovations",

abstract = "In this paper, we solve the problem of optimal control of products diffusion by quality in a context of monopolistic competition. To do so, we introduce a dynamic demand function leaning on two hypotheses: first, price acts a signal of quality; second, demand is more sensitive to quality than to price. Using the maximum principle of Pontryagin, we then characterize the optimal dynamic trajectory of quality and its qualitative properties.",

keywords = "Diffusion, Innovation, Optimal control, Product planning, Quality",

author = "{El Ouardighi}, Fouad and Tapiero, {Charles S.}",

year = "1998",

month = apr,

day = "1",

doi = "10.1016/s0377-2217(97)00158-6",

language = "English (US)",

volume = "106",

pages = "31--38",

journal = "European Journal of Operational Research",

issn = "0377-2217",

publisher = "Elsevier",

number = "1",

}

TY - JOUR

T1 - Quality and the diffusion of innovations

AU - El Ouardighi, Fouad

AU - Tapiero, Charles S.

PY - 1998/4/1

Y1 - 1998/4/1

N2 - In this paper, we solve the problem of optimal control of products diffusion by quality in a context of monopolistic competition. To do so, we introduce a dynamic demand function leaning on two hypotheses: first, price acts a signal of quality; second, demand is more sensitive to quality than to price. Using the maximum principle of Pontryagin, we then characterize the optimal dynamic trajectory of quality and its qualitative properties.

AB - In this paper, we solve the problem of optimal control of products diffusion by quality in a context of monopolistic competition. To do so, we introduce a dynamic demand function leaning on two hypotheses: first, price acts a signal of quality; second, demand is more sensitive to quality than to price. Using the maximum principle of Pontryagin, we then characterize the optimal dynamic trajectory of quality and its qualitative properties.

KW - Diffusion

KW - Innovation

KW - Optimal control

KW - Product planning

KW - Quality

UR - http://www.scopus.com/inward/record.url?scp=0003186717&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=0003186717&partnerID=8YFLogxK

U2 - 10.1016/s0377-2217(97)00158-6

DO - 10.1016/s0377-2217(97)00158-6

M3 - Article

AN - SCOPUS:0003186717

SN - 0377-2217

VL - 106

SP - 31

EP - 38

JO - European Journal of Operational Research

JF - European Journal of Operational Research

IS - 1

ER -

Quality and the diffusion of innovations

Abstract

Keywords

ASJC Scopus subject areas

Access to Document

Other files and links

Fingerprint

Cite this