(a) Recall the advertising problem (Exercise 5 of Section 6.1). Considering the problem as an infinite horizon...

Question:

(a) Recall the advertising problem (Exercise 5 of Section 6.1). Considering the problem as an infinite horizon discounted reward problem with discount factor \(\alpha=.9\), write the DP equation.

(b) Find the optimal value function and the optimal action at the state where the soft drink has the maximum \(30 \%\) of the market, as a function of the problem parameters \(r\) and \(c\).

(c) Let \(r=10, c=2\), and find the optimal value function and the optimal policy for the advertising problem, without resorting to successive approximations.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Question Posted: