Article ID Journal Published Year Pages File Type
7543846 Operations Research Letters 2018 6 Pages PDF
Abstract
We consider a pricing and advertising dynamic-optimization problem where the goodwill dynamics evolve à la Nerlove-Arrow. The firm maximizes its profit over a finite-planning horizon corresponding to the product's lifespan, and it turns out that the Hamiltonian is non-concave. We show the existence and uniqueness of an optimal solution under some mild conditions.
Related Topics
Physical Sciences and Engineering Mathematics Discrete Mathematics and Combinatorics
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