In this paper we characterize the feedback equilibrium of a general infinite-horizon Stackelberg-Nash differential game where the roles of the players are mixed. By mixed we mean that one player is a leader on some decisions and a follower on other decisions. We prove a verification theorem that...

A nearly explicit feedback Stackelberg-Nash equilibrium is obtained in a dynamic distribution channel consisting of a manufacturer and two competing asymmetric retailers engaged in promoting the manufacturer's product to be sold through the retailers. The manufacturer decides on its support for...

This paper describes a modelling methodology for multivariate stochastic processes. The concept of multiple causality is discussed and a procedure to detect multiple causality is suggested. The data of a major Canadian supermarket is analyzed and a multivariate autoregressive model for this...

We study the problem of scheduling a chain-reentrant shop, in which each job goes for its processing first to a machine called the primary machine, then to a number of other machines in a fixed sequence, and finally back to the primary machine for its last operation. The problem is to schedule...

We consider a manufacturer that procures raw material through a long-term contract and spot markets to produce goods to be sold in a market that consists of risk-averse strategic consumers. To increase consumer demand and obtain demand information, the manufacturer may implement an advance...

An upward line extension is a new improved product within an existing product category for the high end of the market. Many firms pursue line-extension strategies, but such strategies carry risks due to uncertain consumer taste, the internal competition between products, and the external...

Advertising efforts mainly aim to build broader brand image and increase sales. In the online context, widely-successful sponsored search advertising (SSA), which predominantly employs performance-based schemes (e.g., pay-per-click), has been largely treated as a direct-selling mechanism. Recent...

We present a sufficient condition for a feedback Stackelberg equilibrium of a stochastic differential game on an infinite horizon. This condition gives rise to a system of elliptic partial differential equations involving a static Stackelberg game at the level of Lagrangian. As an example, we...

For most multi-period decision-making problems, it is generally well-accepted that the influence of information about later periods on the optimal decision in the current period reduces as we move farther into the future. If and when this influence reduces to zero, the corresponding problem...

Optimal control theory is employed to derive explicitly the optimal (profit maximizing) price of a durable new product over time. The sales rate dynamics depends on the product price and on the unsold portion of the market. Specifically, the hazard rate (i.e. the probability of a purchase by a...