Skip to main content
Article thumbnail
Location of Repository

Optimal Advertising Policies for Diffusion Models of New Product Innovation in Monopolistic Situations

By Engelbert Dockner and Steffen Jørgensen


This paper deals with the determination of optimal advertising strategies for new product diffusion models. We consider the introduction of a new consumer durable in a monopolistic market and the evolution of sales is modelled by a flexible diffusion model. Repeat sales and possible entry of rivals are disregarded but we allow for discounting of future revenue streams and cost learning curve. Using standard methods of optimal control theory we characterize qualitatively the structure of an optimal advertising strategy for different versions of the diffusion, marketing: advertising, marketing: new products

DOI identifier: 10.1287/mnsc.34.1.119
OAI identifier:
Download PDF:
Sorry, we are unable to provide the full text but you may find it at the following location(s):
  • (external link)
  • Suggested articles

    To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.