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Optimal pricing and advertising policies for a one-time entertainment event

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  • Jørgensen, Steffen
  • Zaccour, Georges

Abstract

We consider the problem of pricing and advertising a one-time entertainment event. Three pricing policies are characterized and contrasted, namely, dynamic price (DP), constant price (CP) and two-market price (TMP). In this last scenario, the selling season is composed of a regular price period and a last-minute price period, with the switching date between the two markets being determined endogenously.

Suggested Citation

  • Jørgensen, Steffen & Zaccour, Georges, 2019. "Optimal pricing and advertising policies for a one-time entertainment event," Journal of Economic Dynamics and Control, Elsevier, vol. 100(C), pages 395-416.
    • Handle: RePEc:eee:dyncon:v:100:y:2019:i:c:p:395-416
    DOI: 10.1016/j.jedc.2019.01.007
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    More about this item

    Keywords

    Entertainment; Advertising; Pricing; Capacity planning; Optimal control problems;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D92 - Microeconomics - - Micro-Based Behavioral Economics - - - Intertemporal Firm Choice, Investment, Capacity, and Financing
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising

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