| Article ID: | iaor20013954 |
| Country: | Netherlands |
| Volume: | 88 |
| Start Page Number: | 15 |
| End Page Number: | 29 |
| Publication Date: | Jun 1999 |
| Journal: | Annals of Operations Research |
| Authors: | Barucci Emilio, Gozzi Fausto |
| Keywords: | control processes |
In this paper, we present a model of optimal advertising with a continuum of goods differentiated by their vintage. The model is an infinite horizon/infinite dimensional optimal control model and the firm advertises a continuum of goods. We prove that the goodwill of a good accumulated through advertising does not necessarily reach its maximum when it is launched onto the market: it can be a single peaked function of the good vintage.