publication . Article . Preprint . 2003

The Stochastic Goodwill Problem

Marinelli, Carlo;
Open Access
  • Published: 20 Oct 2003 Journal: European Journal of Operational Research, volume 176, pages 389-404 (issn: 0377-2217, Copyright policy)
  • Publisher: Elsevier BV
Abstract
Stochastic control problems related to optimal advertising under uncertainty are considered. In particular, we determine the optimal strategies for the problem of maximizing the utility of goodwill at launch time and minimizing the disutility of a stream of advertising costs that extends until the launch time for some classes of stochastic perturbations of the classical Nerlove-Arrow dynamics. We also consider some generalizations such as problems with constrained budget and with discretionary launching.
Subjects
free text keywords: Management Science and Operations Research, Modelling and Simulation, Information Systems and Management, Economics, Bellman equation, Optimal control, Stochastic control, Linear-quadratic regulator, New product development, business.industry, business, Mathematical optimization, Operations research, Launch Time, Generalization, Goodwill, Operations management, Mathematics - Optimization and Control, 90B60 (Primary), 93E20, 49N10 (Secondary)
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publication . Article . Preprint . 2003

The Stochastic Goodwill Problem

Marinelli, Carlo;