Optimal Advertising and Pricing in a New-Product Adoption Model

Journal of Optimization Theory & Applications, Vol. 139, No. 2, pp. 351-360, 2008

10 Pages Posted: 26 Jan 2008 Last revised: 1 May 2014

See all articles by Suresh Sethi

Suresh Sethi

University of Texas at Dallas - Naveen Jindal School of Management

Ashutosh Prasad

University of California, Riverside (UCR)

Xiuli He

University of North Carolina at Charlotte

Date Written: 2008

Abstract

A model of new-product adoption is proposed that incorporates price and advertising effects. An optimal control problem that uses the model as its dynamics is solved explicitly to obtain the optimal price and advertising effort over time. The model has a great potential to be used in obtaining solutions and insights in a variety of differential game settings.

Keywords: new-product adoption model, durable goods model, pricing, advertising, optimal control

JEL Classification: M37, C61, M30

Suggested Citation

Sethi, Suresh and Prasad, Ashutosh and He, Xiuli, Optimal Advertising and Pricing in a New-Product Adoption Model (2008). Journal of Optimization Theory & Applications, Vol. 139, No. 2, pp. 351-360, 2008, Available at SSRN: https://ssrn.com/abstract=1087453

Suresh Sethi (Contact Author)

University of Texas at Dallas - Naveen Jindal School of Management ( email )

800 W. Campbell Road, SM30
Richardson, TX 75080-3021
United States

Ashutosh Prasad

University of California, Riverside (UCR)

900 University Avenue
Riverside, CA CA 92521
United States

Xiuli He

University of North Carolina at Charlotte ( email )

9201 University City Boulevard
Charlotte, NC 28223
United States

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
373
Abstract Views
1,806
Rank
146,211
PlumX Metrics