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Author: Yakir Plessner
Publisher:
ISBN:
Category :
Languages : en
Pages : 44
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Author: Yakir Plessner
Publisher:
ISBN:
Category :
Languages : en
Pages : 44
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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: Sheng C. Hu
Publisher:
ISBN:
Category :
Languages : en
Pages : 60
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Author: Sheng C. Hu
Publisher:
ISBN:
Category : Advertising
Languages : en
Pages : 32
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Author: Manak Gupta
Publisher:
ISBN:
Category :
Languages : en
Pages :
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The problem of optimal joint pricing and advertising decision making for a new product facing potential competitive entry has received inadequate attention. We propose a model that attempts to find the optimal price - advertising frontier in the face of potential competitive entry that maximizes total discounted profits for pre- and post-entry periods. We find that a firm would charge the price that equates price elasticity to marginal revenue product of advertising (as predicted by [Dorfman, R. and Steiner, P.O. (1954), Optimal Advertising and Optimal Quality, American Economic Review, 44(5), 826-836.]) only when the potential effects of pricing and advertising on its market share are not considered. Under optimal conditions, aware that market share is subject to erosion, the firm charges a somewhat lower price than the profit maximizing price, and sets an advertisement expense that is somewhat higher than the profit-maximizing advertising level as predicted by Cournot's monopolistic setting. We illustrate the applicability of our model using business product examples taken from several industries including operating systems, software, pharmaceutical, and telephone switching. Directions for future research with implications for B2B managers (for example, the possible effects of preannouncement to forestall competitive entry) are discussed.
Author: Anand Krishnamoorthy
Publisher:
ISBN:
Category :
Languages : en
Pages : 33
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This paper analyzes dynamic advertising and pricing policies in a durable-good duopoly. The proposed infinite-horizon model, while general enough to capture dynamic price and advertising interactions in a competitive setting, also permits closed-form solutions. We use differential game theory to analyze two different demand specifications - linear demand and isoelastic demand - for symmetric and asymmetric competitors. We find that the optimal price is constant and does not vary with cumulative sales, while the optimal advertising is decreasing with cumulative sales. Comparative statics for the results are presented.
Author: Frederic Alan Miercort
Publisher:
ISBN:
Category : Advertising
Languages : en
Pages : 170
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An inventory model which includes the possibility of advertising (called the basic model) is investigated. This model is a stochastic inventory model with linear ordering costs and increasing, convex holding and penalty cost functions. Results are obtained for both the finite horizon and infinite horizon cases. The optimal policy for the basic model turns out to be very similar to the usual single critical number policies. Several generalizations of the basic model are then considered. One generalization considers the situation where the added demand due to advertising is not deterministic, but stochastic in nature. Under certain conditions, finite horizon results are obtained for this model. The second generalization is to include a set-up cost in the ordering cost function. One-period results are obtained for this model. Finally, an investigation is made of an inventory model in which the selling price is not fixed. Results are obtained for the finite horizon case, and again the optimal policy bears a strong resemblance to the usual single critical number policies. (Author).
Author: Kalyan T. Talluri
Publisher: Springer Science & Business Media
ISBN: 0387273913
Category : Business & Economics
Languages : en
Pages : 731
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Book Description
Revenue management (RM) has emerged as one of the most important new business practices in recent times. This book is the first comprehensive reference book to be published in the field of RM. It unifies the field, drawing from industry sources as well as relevant research from disparate disciplines, as well as documenting industry practices and implementation details. Successful hardcover version published in April 2004.
Author: Timothy Michael Devinney
Publisher: Free Press
ISBN:
Category : Business & Economics
Languages : en
Pages : 440
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Author: Gerald Luther Thompson
Publisher:
ISBN:
Category : Advertising
Languages : en
Pages : 39
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