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Author: Kurt Helmes
Publisher:
ISBN:
Category :
Languages : en
Pages : 19
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Book Description
In this paper we analyze a stochastic dynamic advertising and pricing model with isoelastic demand. The state space is discrete, time is continuous and the planning horizon is allowed to be finite or infinite. A dynamic version of the Dorfman-Steiner identity will be derived. Explicit expressions of the optimal advertising and pricing policies, of the value function and of the optimal advertising expenditures will be given. The general results will be used to analyze the case of impatient customers. Furthermore, particular time inhomogeneous models and homogeneous ones with and without discounting will be examined. We will study the social efficiency of a monopolist's optimal policies and the consequences of specific subsidies. From a buyer's perspective, our analysis reveals that waiting -- when looking at (immediate) expected prices -- is never profitable should two or more units be available. But we will also prove that the sequence of average sales prices is monotone decreasing. Moreover, the techniques applied to solve the discrete stochastic advertising and pricing problem will be used to solve a related deterministic control problem with continuous state space.
Author: Kurt Helmes
Publisher:
ISBN:
Category :
Languages : en
Pages : 19
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Book Description
In this paper we analyze a stochastic dynamic advertising and pricing model with isoelastic demand. The state space is discrete, time is continuous and the planning horizon is allowed to be finite or infinite. A dynamic version of the Dorfman-Steiner identity will be derived. Explicit expressions of the optimal advertising and pricing policies, of the value function and of the optimal advertising expenditures will be given. The general results will be used to analyze the case of impatient customers. Furthermore, particular time inhomogeneous models and homogeneous ones with and without discounting will be examined. We will study the social efficiency of a monopolist's optimal policies and the consequences of specific subsidies. From a buyer's perspective, our analysis reveals that waiting -- when looking at (immediate) expected prices -- is never profitable should two or more units be available. But we will also prove that the sequence of average sales prices is monotone decreasing. Moreover, the techniques applied to solve the discrete stochastic advertising and pricing problem will be used to solve a related deterministic control problem with continuous state space.
Author: Erich Schneider
Publisher: Psychology Press
ISBN: 9780415313193
Category : Business & Economics
Languages : en
Pages : 400
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Book Description
This volume analyses value and equilibrium. Chapters on the decisions of household and on the theory of the firm (including short and long-term planning and investment) include both static and dynamic analysis. * Based on the enlarged sixth German edition this English edition contains many diagrams and an introduction to linear programming, as well as full treatment of the author's well-known theory of production.
Author: Shah, Nita H.
Publisher: IGI Global
ISBN: 1522532331
Category : Business & Economics
Languages : en
Pages : 672
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Book Description
Stock management and control is a critical element to the success and overall financial well-being of an organization. Through the application of innovative practices and technology, businesses are now able to effectively monitor their operations and manage their inventory by evaluating sales patterns and customer preferences. The Handbook of Research on Promoting Business Process Improvement Through Inventory Control Techniques is a critical scholarly resource that examines optimization techniques, data mining concepts, and genetic algorithms to manage inventory control. Featuring coverage on a broad range of topics such as logistics and supply chain management, stochastic inventory modelling, and inventory management in healthcare, this book is geared towards academicians, practitioners, and researchers seeking various research methods to get optimal ordering policy.
Author: Tudor Bodea
Publisher: Business Expert Press
ISBN: 1606492586
Category : Business & Economics
Languages : en
Pages : 156
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Book Description
Pricing analytics uses historical sales data with mathematical optimization to set and update prices offered through various channels in order to maximize profit. With this outstanding contribution to this subject, you will learn just how to identify and exploit pricing opportunities in different business contexts. Each chapter looks at pricing from an economist's viewpoint beginning with the basic concept of pricing analytics and what type of data are needed to use this powerful science; the common assumptions regarding the customer population's willingness- to-pay are discussed along with the price-response functions that result from these assumptions; examples from several industries and organizations; dynamic pricing, with a special emphasis on the most common application--markdown pricing; the new field of customized pricing analytics, where a firm responds to a request-for-bids or request-for-proposals with a customized price response; and the relevant aspects of behavioral science to pricing. Additional examples include the asymmetry of joy/pain that customers feel in response to price decreases/increases.
Author: John M. Scheidell
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 88
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Book Description
Author: Henry W. Kinnucan
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Using a simple market model and Frisch's duality relation, this report develops propositions about the relationship between advertising and the market demand elasticity that may prove useful in empirical research. In particular, we find that a parallel shift in a linear demand function always alters the market demand elasticity unless supply is unitary elastic. However, the elasticity change in most cases will be negligible. We also find that curve rotation does not imply that the demand elasticity has changed, and vice versa. Lastly, if the price level affects advertising's ability to shift the market demand curve, it must also be true that advertising affects the demand elasticity. The converse is also true, i.e., if advertising affects the demand elasticity, the price level must affect advertising's ability to shift the demand curve.
Author: Marc Nerlove
Publisher:
ISBN:
Category : Advertising
Languages : en
Pages : 80
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Book Description
Optimal advertising and price policies are derived for the individual firm under conditions of imperfect competition. The model is simplified in the sense that it allows jump policies, which imply an infinite rate of current advertising expenditure, in the initial period. It has the advantage of considering contraction as well as expansion policies. When no factors operate to shift the demand function independently of the firm's actions, the optimal price and advertising policies are shown to be stationary after a certain point. The concept of good will, a stock related to th flow of current advertising expenditures, is introduced. Analysis of the special case in which demand is linear in logarithms and total cost is linear leads to more specific conclusions. We show that the optimal stationary solution implies a constant ratio of advertising to sales. Even in the nonstationary case, in which other factors operate to shift the demand function, the same result is obtained when these factors are assumed to change at a constant proportional rate. This result is supported by some evidence on the actual behavior of firms. (Author).
Author: Tamer Başar
Publisher: Springer Science & Business Media
ISBN: 3642616364
Category : Business & Economics
Languages : en
Pages : 299
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Book Description
This volume contains eleven articles which deal with different aspects of dynaoic and differential game theory and its applications in economic modeling and decision making. All but one of these were presented as invited papers in special sessions I organized at the 7th Annual Conference on Economic Dynamics and Control in London, England, during the period June 26-28, 1985. The first article, which comprises Chapter 1, provides a general introduction to the topic of dynamic and differential game theory, discusses various noncooperative equilibrium solution concepts, includ ing Nash, Stackelberg, and Consistent Conjectural Variations equilibria, and a number of issues such as feedback and time-consistency. The second chapter deals with the role of information in Nash equilibria and the role of leadership in Stackelberg problems. A special type of a Stackelberg problem is the one in which one dominant player (leader) acquires dynamic information involving the actions of the others (followers), and constructs policies (so-called incentives) which enforce a certain type of behavior on the followers; Chapter 3 deals with such a class of problems and presents some new theoretical results on the existence of affine incentive policies. The topic of Chapter 4 is the computation of equilibria in discounted stochastic dynamic games. Here, for problems with finite state and decision spaces, existing algorithms are reviewed, with a comparative study of their speeds of convergence, and a new algorithm for the computation of nonzero-sum game equilibria is presented.
Author: Margriet F. Caswell
Publisher:
ISBN:
Category : Advertising
Languages : en
Pages : 72
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Book Description
Author: Roberto Leombruni
Publisher: World Scientific
ISBN: 9812561005
Category : Business & Economics
Languages : en
Pages : 431
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Book Description
This book presents the contributions to the first Wild@Ace conference. The acronym stands for ?Workshop on Industrial and Labor Dynamics ? The Agent-Based Computational Aproach?, and it has been the first event ever focusing on the very promising use of the agent-based simulation approach for investigation of labor economics and industrial organization issues.Agent-based models are computer models in which a multitude of agents ? each embodied in a specific software code ? interact. These agents can represent individuals households, firms, institutions, etc. Moreover, ?special? agents can be added to observe and monitor individual and collective behavior. One of the main purpose of writing an ACE model is to gain intuitions on the two-way feedback between the microstructure and the macrostructure of a phenomenon of interest. How is it that simple aggregate regularities may arise from individual disorder? Or that a nice structure at an individual level may lead to a complete absence of regularity in the aggregate? How is it that the complex interaction of very simple individuals may lead to surprisingly complicated aggregate dynamics? Or that sophisticated agents may be unable to organize themselves in any interesting way?The book includes contributions by some of the most distinguished researchers in the field, such as the economists Alan Kirman, Giovanni Dosi, Leigh Tesfatsion and Mauro Gallegati, and the sociologist Nigel Gilbert.
