Temporal patterns for advertising include constant spending over time, decreasing spending over time and increasing spending over time. This research shows that all these spending patterns emerge at optimality for the same response function dynamics, due to differences in salvage value assumptions. I use these results to develop a methodology for determining the optimal planning horizon length for each pattern of spending.
- Boundary value
- Stochastic optimal control
ASJC Scopus subject areas
- Control and Systems Engineering
- Electrical and Electronic Engineering