Abstract
A stochastic (diffusion) sales response model to advertising is postulated. Optimum advertising policies are then found by solving a stochastic control problem with reflecting boundaries. Analytical results are obtained and interpreted to yield insights regarding a firm's risk behaviour and its optimal advertising policy.
Original language | English (US) |
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Pages (from-to) | 299-304 |
Number of pages | 6 |
Journal | Optimal Control Applications and Methods |
Volume | 8 |
Issue number | 3 |
DOIs | |
State | Published - 1987 |
Keywords
- Optimal advertising
- Sales response models
- Stochastic optimal control
ASJC Scopus subject areas
- Control and Systems Engineering
- Software
- Control and Optimization
- Applied Mathematics