We consider an infinite-horizon differential game played by two direct marketers. Each player controls the number of emails sent to potential customers at each moment in time. There is a cost associated to the messages sent, as well as a potential reward. The latter is assumed to depend on the...

How should firms price new products when they don't know the timing, nor the nature of the next competitive entry? To guide managers' pricing decisions in such contexts, we propose a dynamic pricing model with two types of randomly timed entry, i.e. imitative and innovative. The characterization...

In Markov-switching regression models, we use Kullback-Leibler (KL) divergence between the true and candidate models to select the number of states and variables simultaneously. In applying Akaike information criterion (AIC), which is an estimate of KL divergence, we find that AIC retains too...