-Arrow advertising model. The optimal control is the rate of advertising expenditure required to maximize the present value of net profit … streams over an infinite horizon subject to a replenishable budget. It is shown that an equilibrium level of advertising …

We examine a special class of dynamic pricing and advertising models for the sale of perishable goods, including … as well as of the optimal pricing and advertising policy in feedback form. Moreover, we show that for small unit shares … that in the case of positive holding costs, on average, optimal prices increase in time and advertising rates decrease …