We analyze the strategic behavior of firms when demand is determined by a rule of thumb behavior of consumers. We assume consumer dynamics where individual consumers follow simple behavioral decision rules governed by imitation and habit as suggested in consumer research. On this basis, we...

The optimal control problem of determining advertising efforts for a seasonal good in a heterogeneous market is considered. We characterize optimal advertising exposures under different conditions: the general situation in which several wide-spectrum media are available, under the assumption of...

Cooperative advertising is an important incentive offered by a manufacturer to influence retailers' promotional decisions. We analyze a retail market duopoly where one or both of competing retailers are supported by the manufacturer in their advertising costs. We model the problem as a...

This paper considers the problem of optimizing the institutional advertising expenditure for a firm which produces two products. The problem is formulated as a minimum-time control problem for the dynamics of an extended Vidale-Wolfe advertising model, the optimal control being the rate of...

This paper considers an optimal control problem for the dynamics of a contagion model, the optimal control being the rate of advertising expenditure that maximizes the present value of net profit streams over an infinite horizon. By using a Green's theorem approach, it is shown that there are...

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...

A general sates-advertising model is developed in which the state of the system represents a population distribution over a parameter space. With appropriate interpretations, this can include income, family size, geographic distributions, etc. Effects of information diffusion, interaction, and...

Firms that want to increase the sales of their brands through advertising have the choice of capturing market share from their competitors through brand advertising, or increasing primary demand for the category through generic advertising. In this paper, differential game theory is used to...

In the face of demand uncertainty, a monopolist can observe sales as a controlled reaction to its price and advertising so as to improve the choice of this marketing mix in the future. Furthermore, to upgrade its knowledge about demand the firm has the option to invest in external market...

We consider a dynamic Stackelberg game between a manufacturer and a retailer facing a randomly changing market environment over time modeled as a Markov process. The manufacturer announces the wholesale price and a cooperative (co-op) advertising subsidy, and the retailer sets the retail price...