| Article ID: | iaor200912337 |
| Country: | United States |
| Volume: | 139 |
| Issue: | 2 |
| Start Page Number: | 351 |
| End Page Number: | 360 |
| Publication Date: | Nov 2008 |
| Journal: | Journal of Optimization Theory and Applications |
| Authors: | Sethi S P, Prasad A, He X |
| Keywords: | advertising, game theory |
A model of new–product adoption is proposed that incorporates price and advertising effects. An optimal control problem that uses the model as its dynamics is solved explicitly to obtain the optimal price and advertising effort over time. The model has a great potential to be used in obtaining solutions and insights in a variety of differential game settings.