Optimal and Near Optimal Price and Advertising Strategies for Finite and Infinite Horizons

The simplest price and advertising optimization model consistent with current empirical research is formulated and analyzed. An explicit horizon function is introduced to compare and synthesize the finite and infinite horizon situations. The practically prevalent procedure of setting this period's advertising expenditure proportional to the previous period's sales is, for good reasons, declared near optimal.

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Year of publication:	1982
Authors:	Welam, Ulf Peter
Published in:	Management Science. - Institute for Operations Research and the Management Sciences - INFORMS, ISSN 0025-1909. - Vol. 28.1982, 11, p. 1313-1327
Publisher:	Institute for Operations Research and the Management Sciences - INFORMS
Subject:	marketing \| advertising rules

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Extent:	application/pdf
Type of publication:	Article
Other identifiers:	10.1287/mnsc.28.11.1313 [DOI]
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10009208949