ISSN:
1573-2878
Keywords:
Management science
;
advertising
;
control theory
;
distributed time lags
Source:
Springer Online Journal Archives 1860-2000
Topics:
Mathematics
Notes:
Abstract The Nerlove-Arrow model of optimal dynamic advertising policies is generalized by incorporating a continuously distributed lag between advertising expenditures and increases in the stock of goodwill. This leads to a control problem where the equation of motion is given by an integro-differential equation. The transitory and steady-state properties of the optimal policies are examined, both for a general lag function and for a gamma distributed lag. The dependence of the steady-state solution on the parameters of the gamma distribution is also investigated. An example is given using specific demand and cost functions.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1007/BF00936722