Quality and the diffusion of innovations

Fouad El Ouardighi; Charles S. Tapiero

doi:10.1016/s0377-2217(97)00158-6

Quality and the diffusion of innovations

Fouad El Ouardighi^*
, Charles S. Tapiero

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

23 Scopus citations

Abstract

In this paper, we solve the problem of optimal control of products diffusion by quality in a context of monopolistic competition. To do so, we introduce a dynamic demand function leaning on two hypotheses: first, price acts a signal of quality; second, demand is more sensitive to quality than to price. Using the maximum principle of Pontryagin, we then characterize the optimal dynamic trajectory of quality and its qualitative properties.

Original language	English
Pages (from-to)	31-38
Number of pages	8
Journal	European Journal of Operational Research
Volume	106
Issue number	1
DOIs	https://doi.org/10.1016/s0377-2217(97)00158-6
State	Published - 1 Apr 1998
Externally published	Yes

Keywords

Diffusion
Innovation
Optimal control
Product planning
Quality

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10.1016/s0377-2217(97)00158-6

Cite this

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KW - Innovation

KW - Optimal control

KW - Product planning

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Quality and the diffusion of innovations

Abstract

Keywords

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