An optimal advertising model with carryover effect and mean field terms

We consider a class of optimal advertising problems under uncertainty for the introduction of a new product into the market, on the line of the seminal papers of Vidale and Wolfe (Oper Res 5:370–381, 1957) and Nerlove and Arrow (Economica 29:129–142, 1962). The main features of our model are that, on one side, we assume a carryover effect (i.e. the advertisement spending affects the goodwill with some delay); on the other side we introduce, in the state equation and in the objective, some mean field terms that take into account the presence of other agents. We take the point of view of a planner who optimizes the average profit of all agents, hence we fall into the family of the so-called “Mean Field Control” problems. The simultaneous presence of the carryover effect makes the problem infinite dimensional hence belonging to a family of problems which are very difficult in general and whose study started only very recently, see Cosso et al. [Ann Appl Probab 33(4):2863–2918, 2023]. Here we consider, as a first step, a simple version of the problem providing the solutions in a simple case through a suitable auxiliary problem.