Existence and uniqueness of optimal dynamic pricing and advertising controls without concavity

, , and

BibTeX reference

We consider a pricing and advertising dynamic-optimization problem where the goodwill dynamics evolve à la Nerlove-Arrow. The firm maximizes its profit over a finite-planning horizon corresponding to the product's lifespan, and it turns out that the Hamilonian is non-concave. We show the existence and uniqueness of an optimal solution under some mild conditions.

, 16 pages

Research Axis


, , and
Operations Research Letters, 46(2), 199–204, 2018 BibTeX reference