MODELS OF ADVERTISEMENT AND CLIENTS ATTENDANCE OF THE MARKET USING A FOURIER– SERIES APPROXIMATION
Keywords:Profit, Advertising, Company, Competitiveness Model, Economic Time Series, Market Attendances, Fourier Approximation, Nonlinearity
AbstractThe analysis of advertising impact on the competitiveness and profit of the companies is given. The model of the companies, which agreed to implement product supplies with the same fixed price and have constant agreed expenditures, is considered. As the principle of optimality the company’s integral profit is studied. Fraction of the company’s expenditures elasticity profit is given. The paper develops a simple model for economic time – varying series presenting the data concerning number of the market attendances. The method of modeling uses a Fourier approximation to present series of the market attendances. The Fourier approximation allows for implementing of the selection of frequencies to be included in the model. It is shown that approach for the modeling provides approximation of the economic time – varying series with a form of nonlinearity. Using daily data over the period of 2008:3– 2011:3, we have developed a model showing the nonlinear time – varying dependence of the variable presenting sequence of the number of market attendances.
BECKER R., ENDERS W., HURN S. A general test for time dependence in
parameters, Journal of Applied Econometrics 19, 2004, p. 899–906.
GALLANT R., SOUZA G. On the asymptotic normality of Fourier flexible form
estimates, Journal of Econometrics 50, 1991, p. 329 – 353.
GRANGER C.W.J., HATANAKA M. Spectral Analysis of Economic Time Series.
Princeton University Press, 1964, p. 312.
SCHMALENSEE R. Advertising and market structure in: Stiglitz J.E., Mathewson
F. (eds) New Developments in the Analysis of Market Structure. Camb. Un. Press,
, p. 179–211.