Dynamic advertising and pricing models: a special class of controlled jump Markov processes

Abstract. Stochastic dynamic pricing models have been extensively studied since the
'90s. Typically, these models are controlled jump Markov models on a nite state space.
The talk will focus on recent developments of the area, speci cally, on the combination of
dynamic pricing and dynamic advertising. In particular, we shall present results on the
distributions of optimal inventory levels and optimal prices. The talk will be based on
joint work with R. Schlosser, T. Templin and M. Weber.