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Full-Text Articles in Statistics and Probability
Optimal Filtering Of An Advertising Production System With Deteriorating Items, Lakhdar Aggoun, Ali Benmerzouga, Lotfi Tadj
Optimal Filtering Of An Advertising Production System With Deteriorating Items, Lakhdar Aggoun, Ali Benmerzouga, Lotfi Tadj
Applications and Applied Mathematics: An International Journal (AAM)
In this paper, we consider an integrated stochastic advertising-production system in the case of a duopoly. Two firms spend certain amounts to advertise some product. The expenses processes evolve according to the jumps of two homogeneous, finite-state Markov chains. We assume that the items in stock may be subject to deterioration and the deterioration parameter is assumed to be random.