The investment problem in natural gas transmission in a static sense as analyzed by Chenery [Chenery, H. B. 1949. Engineering production functions. Quart. J. Econ. 63(November) 507-531.] and Lehn [Lehn, H. C. 1943. An analysis of gaspipeline economics. Am. Soc. Mech. Engrs. Trans. (July)...

In this paper, a dynamic continuous time model, encompassing operations, investments, output prices, informative advertising, and brand advertising, is formulated as an optimal control problem in an activity analysis context. In the model, the objective of the firm is to maximise, subject to...