Optimization of the marketing strategy of a trading company

D.V. Denisov, V.V. Latiy

Abstract


The purpose of this work is to describe the model of a special type of trading company and to optimize its marketing costs. The main approach used to solve optimization problems arising is a method of finding generalized Nash equilibria (Generalized Nash Equilibrium Problem). Within the paper the possibility and expediency of applying this approach in the context of constraints on the marketing budget were investigated, and the possibility of reducing the main optimization problem to a simpler form was proved

Full Text:

PDF (Russian)

References


S. P. Sethi, Deterministic and Stochastic Optimization of a Dynamic Advertising Model. Optimal Control Application and Methods 4 (2): 179–184, 1983.

G. Sorger, Competitive dynamic advertising: A modification of the Case game. Journal of Economic Dynamics and Control 13 (1989) 55-80.

F. M. Bass, A. Krishnamoorthy, A. Prasad, S. P. Sethi. Generic and brand advertising strategies in a dynamic duopoly. Marketing Science 24 (4) (2005) 556-568.

A. Prasad, S.P. Sethi, Competitive advertising under uncertainity: A stochastic differential game approach. Journal of Optimiztion Theory and Applications 123(1) (2004) 163-185.

F. Facchinei, C. Kanzow. Generalized Nash equilibrium problems. A Quaterly Journal of Operations Research, Volume 5, Issue 3, pp 173-210, 2007.

A. von Heusinger, C. Kanzow. Optimization reformulations of the generalized Nash equilibrium problem using Nikaido–Isoda-type functions. Technical Report, Institute of Mathematics, University of Wurzburg, Wurzburg, 2006.

A. von Heusinger, C. Kanzow. SC1 optimization reformulations of the generalized Nash equilibrium problem. Technical Report, Institute of Mathematics, University of Wurzburg, Wurzburg, 2007.

E. Cavazzuti, M. Pappalardo, M. Passacantando. Nash equilibria, variational inequalities, and dynamical systems. J Optim Theory Appl 114:491–506, 2002.

S. Boyd, L.Vanderberghe. Convex Optimization. Cambridge University Press New York, NY, USA, 2004.

P. Kaminsky, D. Simchi-Levi. Production and distribution lot sizing in a two-stage supply chain. IIE Transactions (2003) 35, 1065–1075.

G. Debreu. A social equilibrium existence theorem. Proc Natl Acad Sci 38:886–893, 1952.

D. P. Bertsekas. Nonlinear Programming. Belmont, MA: Athena Scientific, 1999.

J. Barzilai and J. M. Borwein. Two point step size gradient method. IMA Journal on Numerical Analysis 8, 1988, pp. 141–148.

L. Peiyu, L. Guihua. Solving a class of generalized Nash equilibrium problems. Journal of Mathematical Research with Applications, May, 2013, Vol. 33, No. 3, pp. 372-378.

T. G. Kolda, R. M. Lewis, V. Torczon. Optimization by Direct Search: New Perspectives on Some Classical and Modern Methods. SIAM REVIEW, Vol. 45, No . 3,pp . 385–482, 2003.


Refbacks

  • There are currently no refbacks.


Abava   Servletsuite

ISSN: 2307-8162