Browsing by Author "Ansari, Manuchehr"

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    Differential game approach to pricing and advertising decisions
    (Elsevier, 2021-07-13) Amoozad Mahdiraji, Hannan; Hatami-Marbini, A.; Mohammadi Moazed, Niloofar; Ansari, Manuchehr; Abbasi Kamardi, Ali Asghar
    This study proposes a model to make concurrent decisions on dynamic pricing and advertising to maximise firms' profitability over an infinite time horizon in a duopoly market. To this end, the Nerlove-Arrow pricing and advertising model is designed in the presence of shifting costs in a dynamic duopolistic competition as a differential game. The Nash equilibrium solution is defined based upon a set of Hamilton–Jacobi–Bellman. Four scenarios are applied for economic interpretations and the efficacy of the model.