This paper considers an optimal control problem for the dynamics of the Nerlove-­Arrow advertising model, the optimal control being the rate of advertising expenditure required to maximize the present value of net profit streams (or, sales) over a finite horizon subject to a budget constraint....

Several nonlinear stochastic models are developed for a dynamic profit-maximizing firm with respect to its price and (possibly) advertising decisions under threat of entry. The optimal price ­advertising policies for these models are characterized by the use of the Maximum Principle. While the...

The accumulated evidence indicates that pure revenue models, such as free-access models and pure subscription fee based models, are not sufficient to support the survival of online information sellers. Hence, hybrid models based on a combination of subscription fees and advertising revenues are...