Deterministic and Stochastic Optimization of a Dynamic Advertising Model

Sethi, Suresh

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Deterministic and Stochastic Optimization of a Dynamic Advertising Model

Optimal Control Applications and Methods, Vol. 4, No. 2 , pp. 179-184, 1983

6 Pages Posted: 17 Jan 2008 Last revised: 1 Feb 2021

See all articles by Suresh Sethi

Suresh Sethi

University of Texas at Dallas - Naveen Jindal School of Management

Date Written: April 7, 1982

Abstract

This paper considers a variation of the Vidale-Wolfe advertising model for which the maximum value of the objective function and the form of the optimal feedback advertising control are identical in both a deterministic and a stochastic environment. The stochastic environment is due to a white noise disturbance introduced in the deterministic sales-advertising dynamics.

Keywords: Stochastic control, sales advertising dynamics, Sethi advertising model, Sethi model, Vidale-Wolfe advertising model, optimal feedback advertising control

JEL Classification: M31, M37, C61

Suggested Citation: Suggested Citation

Sethi, Suresh, Deterministic and Stochastic Optimization of a Dynamic Advertising Model (April 7, 1982). Optimal Control Applications and Methods, Vol. 4, No. 2 , pp. 179-184, 1983, Available at SSRN: https://ssrn.com/abstract=1084250