A Re Issue Policy Model

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A Re Issue Policy Model
Peter Hammann
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, a. , and b, ^. They can be obtained by ^ 111 jt -^ conventional methods in the company's plants. Rather, we shall have to look important, |iikst estimation or forecasts or both will be required. If historical data is available we could transfer it as follows. Assume that, at the beginning T) from this relation: t-1 3. 1 M t=2 1 k (s = 1, , m; t = 2, T) where J is a growth factor that will have to be estimated by analogy with the help of the historical data and present municipal statistical ma...terial.
M, , however, would have either to be borrowed from historical information si (updated by extrapolation or some other more refined technique) or estimated subjectively, making use of the manager's knowledge and experience (see (3) for a similar concept).
The parameter d may be estimated according to past market positions. Typically, management will have at hand some statistics of past market shares versus past promotional expenditures and new product investment which might •10- provide some first clues to this quantity.


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