Conclusion
When this research was started, it was guessed that the Dorfman-Steiner rule would lose its relevance in an intertemporal setting. This belief has turned out to be false: along the optimal paths ofp (t) ands (t), η andμ must be equal. The only difference with the Dorfman-Steiner result is that they will be different from unity.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
R. Armand: Interpretation Economique du Principe du Maximum. Métra InternationalVII (1968), 495–511.
R. Dorfman and P. O. Steiner: Optimal Advertising and Optimal Quality. The American Economic Review44 (1954), 826–836.
R. Dorfman: An Economic Interpretation of Optimal Control Theory. The American Economic Review59 (1969), 00–00
M. Nerlove and K. Y. Arrow: Optimal Advertising Policy under Dynamic Conditions. Economica29, 114 (1962), 129–142.
K. S. Palda: Economic Analysis for Marketing Decisions, Englewood Cliffs-New Jersey 1969.
L. S. Pontryagin, V. G. Boltyanskii, R. V. Gamkrelidze, and E. F. Mishchenko: The Mathematical Theory of Optimal Processes. New York 1962.
Author information
Authors and Affiliations
Additional information
The author is “chargé de cours” at the “Faculté Universitaire Catholique de Mons” (Belgium). He has greatyl benefited from comments by M. Beuthe and J. J. Lambin.
Rights and permissions
About this article
Cite this article
Eeckhoudt, L.R. The “Dorfman Steiner” rule. Zeitschr. f. Nationalökonomie 32, 487–491 (1972). https://doi.org/10.1007/BF01293424
Received:
Published:
Issue Date:
DOI: https://doi.org/10.1007/BF01293424