International Society of Dynamic Games

Dynamic Games and Applications Seminar

Optimal control problems with a stochastic switching time: a marketing application

May 11, 2023  
11:00 AM — 12:00 PM (Montreal time)

Webinar link.

We consider a dynamic optimization problem where a firm plans their advertising strategy under the uncertainty that their production costs may abruptly increase at any time during the programming interval. We present two approaches that yield a close form solution to this two-stage optimal control problem: a backward approach, where the two periods are solved in reverse order, and a heterogeneous one, where a dedicated version of the maximum principle covers both stages simultaneously. The analytical solution is provided in a simple case, and numerical results are presented for the general case. To evaluate the importance of information about the risk of switching, we compare these results with those of a different scenario, where the planner is unaware of the possible switching time.

(With Alessandra Buratto and Luca Grosset.)

Dynamic Games and Applications Seminar

A Dynamic Model for Native Advertising

May 4, 2023
11:00 AM — 12:00 PM (Montreal Time)

Webinar link.

Native advertising is a marketing tool that aims to mimic the regular content of the platform on which it appears. Due to this striking resemblance, native advertising may be very effective, but it may also negatively influence the perceived credibility of the media on which it is placed. In our model, we consider a firm that invests in traditional and native advertising on a high-quality content communication platform which has to consider the trade-off between the profit gained by publishing native advertising and the consequent loss of credibility. We formalise the problem as a Stackelberg infinite-time horizon differential game where the media outlet is the leader. We compute a time-consistent open-loop equilibrium and obtain conditions under which it is optimal for the media to accept native advertising.

(With Alessandra Buratto and Luca Grosset)

Dynamic Games and Applications Seminar

Investment in Vehicle to Grid and Distributed Energy Resources: Distributor versus Prosumer’s Perspectives and the Impact of Applicable Rates

Apr 27, 2023
11:00 AM — 12:00 PM (Montreal time)

Webinar link.

In order for smart homes to be optimally deployed, the following questions should be addressed. Should the distribution company or the prosumer invest in DER and manage it? What combination of DER should be used? Furthermore, what is the right tariff to impose? This study investigates different aspects of smart home investment and management problems to address these questions. A mathematical model for controlling DER and EMS is developed and based on the real-world consumption and generation data and costs, the results are presented. They highlight the importance of deploying Vehicle to Grid (V2G) to make DER investments profitable.

(with Pierre-Olivier Pineau)