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This paper analyzes dynamic advertising and pricing policies in a durable-good duopoly. The proposed infinite …-horizon model, while general enough to capture dynamic price and advertising interactions in a competitive setting, also permits … cumulative sales, while the optimal advertising is decreasing with cumulative sales. Comparative statics for the results are …
Persistent link: https://www.econbiz.de/10012759421
Cooperative (co-op) advertising is an important instrument for aligning manufacturer and retailer decisions in supply … chains. In this, the manufacturer announces a co-op advertising policy, i.e., a participation rate that specifies the … percentage of the retailer's advertising expenditure that it will provide. In addition, it also announces the wholesale price. In …
Persistent link: https://www.econbiz.de/10012766775
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 …
Persistent link: https://www.econbiz.de/10014047881