Article ID: | iaor1989540 |
Country: | United Kingdom |
Volume: | 10 |
Issue: | 4 |
Start Page Number: | 313 |
End Page Number: | 331 |
Publication Date: | Oct 1989 |
Journal: | Optimal Control Applications & Methods |
Authors: | Jedidi Kamel, Eliashberg Jehoshua, Desarbo Wayne S. |
Keywords: | advertising |
A three-stage time-lagged diffusion model that incorporates consumers’ income, advertising and price effects is proposed. The derivation of the model synthesizes and relies upon a number of important arguments made in the diffusion and economic literature. Optimal control theory is used to derive normative advertising and pricing strategic implications for a monopolist introducing a new durable product.