The majority of studies concerning diffusion or product growth of consumer durables have treated the U.S. market as a whole and have applied the diffusion model on the assumption that the market exhibits a homogeneous response in its diffusion process. If the market is heterogeneous, however, an...

This article explores dynamic pricing strategies in the presence of uncertainty. Diffusion dynamics, experience curve effects, and a Poisson type of uncertainty in the demand are incorporated in a model using the framework of a stochastic control problem. The results indicate that the movement...