Optimal control of generic fluid milk advertising expenditures

Donald J. Liu, Olan D. Forker

Research output: Contribution to journalArticle

14 Scopus citations

Abstract

Optimal expenditures of the New York State milk promotion program are determined for three markets. Spending level in New York City and Albany should be reduced by about 10%, while that for Syracuse should be increased three times. Further, there exists an optimal seasonal advertising pattern which reflects the seasonal pattern of the Class 1 differential. In addition, the optimal spending level and seasonal pattern of the state promotion program depends on those of the national program. Thus, coordination between the two promotional units is essential to achieve optimality.

Original languageEnglish (US)
Pages (from-to)1047-1055
Number of pages9
JournalAmerican Journal of Agricultural Economics
Volume72
Issue number4
DOIs
StatePublished - Nov 1990

    Fingerprint

Keywords

  • Dairy promotion
  • Generic advertising
  • New York
  • Optimal control

Cite this