Optimal investment strategy on advertisement in duopoly
In this paper, we will investigate a duopoly competition issue in a commencing period of horizontal expansion. This is an important problem in marketing investment for new products in free market. First, we propose a new market model characterized by nonlinear differential-algebraic equations with...
| Main Authors: | , , , |
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| Format: | Journal Article |
| Published: |
American Institute of Mathematical Sciences (A I M S Press)
2015
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| Online Access: | http://hdl.handle.net/20.500.11937/25170 |
| _version_ | 1848751633416060928 |
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| author | Wang, F. Zhang, Q. Li, Bin Liu, Wan-Quan |
| author_facet | Wang, F. Zhang, Q. Li, Bin Liu, Wan-Quan |
| author_sort | Wang, F. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | In this paper, we will investigate a duopoly competition issue in a commencing period of horizontal expansion. This is an important problem in marketing investment for new products in free market. First, we propose a new market model characterized by nonlinear differential-algebraic equations with continuous inequality constraints, which aims to maximize an enterprise’s product market share rather than its profit in the commencing period in an environment of the duopoly market. In order to solve the investment problem numerically based on proposed model, the control parameterization technique together with the constraint transcription method is used by transforming the proposed problem into a sequence of optimal parameter selection problems. Finally, a practical example on beer sales is used to show the effectiveness of proposed model and we present the optimal advertising strategies corresponding to different competition situations. |
| first_indexed | 2025-11-14T07:55:50Z |
| format | Journal Article |
| id | curtin-20.500.11937-25170 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T07:55:50Z |
| publishDate | 2015 |
| publisher | American Institute of Mathematical Sciences (A I M S Press) |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-251702017-09-13T15:21:24Z Optimal investment strategy on advertisement in duopoly Wang, F. Zhang, Q. Li, Bin Liu, Wan-Quan In this paper, we will investigate a duopoly competition issue in a commencing period of horizontal expansion. This is an important problem in marketing investment for new products in free market. First, we propose a new market model characterized by nonlinear differential-algebraic equations with continuous inequality constraints, which aims to maximize an enterprise’s product market share rather than its profit in the commencing period in an environment of the duopoly market. In order to solve the investment problem numerically based on proposed model, the control parameterization technique together with the constraint transcription method is used by transforming the proposed problem into a sequence of optimal parameter selection problems. Finally, a practical example on beer sales is used to show the effectiveness of proposed model and we present the optimal advertising strategies corresponding to different competition situations. 2015 Journal Article http://hdl.handle.net/20.500.11937/25170 10.3934/jimo.2016.12.625 American Institute of Mathematical Sciences (A I M S Press) unknown |
| spellingShingle | Wang, F. Zhang, Q. Li, Bin Liu, Wan-Quan Optimal investment strategy on advertisement in duopoly |
| title | Optimal investment strategy on advertisement in duopoly |
| title_full | Optimal investment strategy on advertisement in duopoly |
| title_fullStr | Optimal investment strategy on advertisement in duopoly |
| title_full_unstemmed | Optimal investment strategy on advertisement in duopoly |
| title_short | Optimal investment strategy on advertisement in duopoly |
| title_sort | optimal investment strategy on advertisement in duopoly |
| url | http://hdl.handle.net/20.500.11937/25170 |