The goodwill and time to introduce a new product in a market are the decision variables of a non-linear programming problem. Assuming an underlying goodwill dhynamics derived from the Nerlove-Arrow’s model, we are faced with an objective function which is not differentiable over all the feasible set. After decomosing the problem into two diffrentiable non-linear programming problems we suggest a simple algorithm to solve it. A numerical analysis of the problems related with three different utility functions concludes the paper.
New product introduction: determining optimal advertising policies
VISCOLANI, BRUNO
2004
Abstract
The goodwill and time to introduce a new product in a market are the decision variables of a non-linear programming problem. Assuming an underlying goodwill dhynamics derived from the Nerlove-Arrow’s model, we are faced with an objective function which is not differentiable over all the feasible set. After decomosing the problem into two diffrentiable non-linear programming problems we suggest a simple algorithm to solve it. A numerical analysis of the problems related with three different utility functions concludes the paper.
File in questo prodotto:
Non ci sono file associati a questo prodotto.
Pubblicazioni consigliate
I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
