Optimal Advertising with Stochastic Demand
构建了一个随机序列模型，用于确定最优广告支出如何随产品成熟度和历史广告变化，并分析了产品生命周期中广告投入递减的条件。
A stochastic, sequential model is developed to determine optimal advertising expenditures as a function of product maturity and past advertising. Random demand for the product depends upon an aggregate measure of current and past advertising called “goodwill,” and the position of the product in its life cycle measured by sales-to-date. Conditions on the parameters of the model are established that insure that it is optimal to advertise less as the product matures. Additional characteristics of the optimal advertising policy are also established.