%0 Journal Article
%@ 0218-1274
%A Feichtinger, G.
%A Ghezzi, L.L.
%A Piccardi, C.
%D 1995
%F iiasa:4264
%I World Scientific Publishing
%J International Journal of Bifurcation and Chaos
%N 1
%P 255-263
%R 10.1142/S021812749500020X
%T Chaotic behavior in an advertising diffusion model
%U https://pure.iiasa.ac.at/id/eprint/4264/
%V 5
%X The paper is concerned with an advertising diffusion model where a firm devotes a fixed proportion of sales to advertising, while customers go through a two-stage adoption process. The model takes the form of a second-order, time-invariant, nonlinear dynamic system, in which a homoclinic bifurcation to infinity is shown to exist. Allowance is subsequently made for a seasonal fluctuation in the firm's advertising rate. A bifurcation study of the periodic solutions is then accomplished by means of a continuation procedure. Emphasis is placed on the emergence of chaos. Only the chaotic solutions stemming from a cascade of period doublings appear to be economically meaningful.