The Stochastic Goodwill Problem
32 Pages Posted: 7 Jul 2004
Date Written: October 20, 2003
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. We also consider some generalizations, such as problems with constrained budget, optimization under partial information, and discretionary launching.
Keywords: optimal advertising, new product introduction, linear quadratic regulator, stochastic control, discretionary stopping
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
MNC Reporting on CSR and Conflict in Central Africa
By Ans Kolk and Francois Lenfant
-
Business and Partnerships for Development
By Ans Kolk, Rob Van Tulder, ...
-
International Business, Corporate Social Responsibility and Sustainable Development
By Ans Kolk and Rob Van Tulder
-
Trickle Effects of Cross-Sector Social Partnerships
By Ans Kolk, Willemijn Van Dolen, ...
-
By James E. Austin, Roberto Gutiérrez, ...
-
Aprovechar la convergencia (Capitalizing on Convergence)
By James E. Austin, Roberto Gutiérrez, ...
-
Adaptive Responsibilities: Nonlinear Interactions in Cross Sector Social Partnerships