Dynamic pricing, product and process innovation

Dynamic optimal control of process–product innovation with learning by doing

“…First, we extend the model of Chenavaz (2012) to an even more general model in which learning by doing is taken into account. In Chenavaz's (2012) model, the firm's cost functions of product and process innovation only depend on the instantaneous investments.…”

“…First, we extend the model of Chenavaz (2012) to an even more general model in which learning by doing is taken into account. In Chenavaz's (2012) model, the firm's cost functions of product and process innovation only depend on the instantaneous investments. In this paper, the firm's cost functions of product and process innovation depend on both the instantaneous investments and the knowledge accumulations of the product and process innovation.…”

“…In this paper, taking advantage of the analytical framework which is offered by Chenavaz (2012), we present a dynamic optimal control model of process-product innovation with learning by doing. Since much of our analysis concerns firm's learning by doing, the next of this paper surveys the literature on "learning by doing".…”

“…As to the dynamic product and process innovation research, in recent works, Lambertini and Mantovani (2009) modeled the optimal behavior of a multiproduct monopolist investing both in process and in product innovation in a dynamic setting. Chenavaz (2012) developed a product-process innovation model where the problem is to determine an optimal product price, the product and process innovation investment facing a time-varying but under endogeny demand conditions. Furthermore, the author A C C E P T E D M A N U S C R I P T 5 extended Chenavaz's (2011) model to different classes of demand functions and to general innovation functions.…”

Dynamic Pricing with Reference Price Dependence

“…For tractability, the function D is assumed twice continuously differentiable as in Chenavaz (2011Chenavaz ( , 2012. The demand decreases (stricly) with price and increases (weakly) with reference price.…”