Recent development in dynamic pricing and advertising research

Recent development in dynamic pricing and advertising research

A variety of continuous-time differential functions have been developed to investigate dynamic pricing and advertising problems in business and economics fields. we provide a fast depiction of the dynamic advertising and pricing models published after 2000. While joint dynamic pricing and advertising models are extensive, we shall refrain from reviewing the whole literature and focus on models driven from classic dynamic advertising models. We find that the dynamic models reviewed in this paper have been extensively used to analyze various advertising and pricing problems in the monopoly, duopoly, oligopoly, and supply chain systems. Our review reveals that the diffusion models have not been used to analyze advertising and pricing problems in supply chain operations, which may be a research direction in the future. Moreover, we learn from our review that very few publications regarding dynamic pricing and advertising problems have considered the supply chain competition. We also find that very few researchers have used the diffusion model to investigate the dynamic pricing and advertising problems with product quality as a decision variable; and, the pricing decision has not been incorporated into any extant Lanchester model. The paper ends with a summary of our review and suggestions on possible research directions in the future.