Optimal Stochastic Advertising Strategies for the U.S. Beef Industry
Kun C. Lee, Stanley Schraufnagel, Earl O. Heady
January 1982 [82-WP 13]
Lee, K., S. Schraufnagel, and E.O. Heady. 1982. "Optimal Stochastic Advertising Strategies for the U.S. Beef Industry." Working paper 82-WP 13. Center for Agricultural and Rural Development, Iowa State University.
An important decision variable in the promotional strategy for the beef sector is the optimal level of advertising expenditures over time. Optimal stochastic and deterministic advertising expenditures are derived for the U.S. beef industry for the period `1966 through 1980. They are compared with historical levels and gains realized by optimal advertising strategies are measured. Finally, the optimal advertising expenditures in the future are forecasted.