Trial/awareness advertising decisions. A control problem with phase diagrams with non-stationary boundaries

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Abstract

The paper presents a solution to a diffusion process in which advertising has two goals - Awareness Creation and Trial Inducement. It is shown that the advertising time paths can be either monotonic or single peaked. The solution technique involves phase diagrams where the boundaries are non-stationary. General discussion of such techniques is provided. The paper proves the existence of a stationary equilibrium to which the paths converge. Furthermore, this two state variables, two control variables equilibrium point is conditionally stable.

Original languageEnglish
Pages (from-to)333-350
Number of pages18
JournalJournal of Economic Dynamics and Control
Volume6
Issue numberC
DOIs
StatePublished - Sep 1983
Externally publishedYes

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