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Deterministic and stochastic optimization of a dynamic advertising model
Author(s) -
Sethi Suresh P.
Publication year - 1983
Publication title -
optimal control applications and methods
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.458
H-Index - 44
eISSN - 1099-1514
pISSN - 0143-2087
DOI - 10.1002/oca.4660040207
Subject(s) - stochastic control , mathematical optimization , computer science , white noise , bellman equation , stochastic modelling , value (mathematics) , variation (astronomy) , function (biology) , noise (video) , optimal control , stochastic optimization , stochastic process , advertising , mathematics , artificial intelligence , statistics , business , telecommunications , physics , machine learning , evolutionary biology , astrophysics , image (mathematics) , biology
This paper considers a variation of the Vidale‐Wolfe advertising model for which the maximum value of the objective function and the form of the optimal feedback advertising control are identical in both a deterministic and a stochastic environment. The stochastic environment is due to a white noise disturbance introduced in the deterministic sales‐advertising dynamics.