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.
Aggoun, Lakhdar; Benmerzouga, Ali; and Tadj, Lotfi
Optimal Filtering of an Advertising Production System with Deteriorating Items,
Applications and Applied Mathematics: An International Journal (AAM), Vol. 4,
2, Article 10.
Available at: https://digitalcommons.pvamu.edu/aam/vol4/iss2/10