Accession Number : AD0748206

Title :   Optimal Dynamics of the Vidale-Wolfe Advertising Model. Part I. Fixed Terminal Market Share.

Descriptive Note : Technical rept.,

Corporate Author : STANFORD UNIV CALIF OPERATIONS RESEARCH HOUSE

Personal Author(s) : Sethi,Suresh P.

Report Date : MAY 1972

Pagination or Media Count : 35

Abstract : The optimal control problem consist of the Vidale-Wolfe advertising model as its dynamics; the optimal control being the rate of advertising expenditure which must achieve a specified terminal market share in a way which maximizes the present value of net profit streams over a finite horizon. The problem is completely solved with or without an upper limit on advertising rate. The solution in the later case is obtained by using Green's theorem while the former case requires additional use of switching point analysis based on maximum principle. The optimal control is characterized by a combination of bang-bang control, impulse control, and singular control; with the singular are forming a turnpike. (Author)

Descriptors :   (*ECONOMICS, MATHEMATICAL MODELS), ADAPTIVE CONTROL SYSTEMS, PUBLIC OPINION, MANAGEMENT PLANNING AND CONTROL, GAME THEORY, DECISION THEORY, OPTIMIZATION

Subject Categories : Economics and Cost Analysis
      Operations Research

Distribution Statement : APPROVED FOR PUBLIC RELEASE