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Commentary on "Dynamic Incentives in Sales Force Compensation".
- Source :
- Marketing Science; Jan/Feb2024, Vol. 43 Issue 1, p229-231, 3p
- Publication Year :
- 2024
-
Abstract
- This paper points out the error in the HJB equation in a previous published paper and presents the correct HJB equation. We show that the Hamilton-Jacobi-Bellman (HJB) equation for the salesperson's problem is not correct because of the effect of a positive discount factor for the infinite-horizon risk-sensitive control. As a result, their analyses and insights are incorrect. We present the correct HJB equation for the salesperson's problem, which is a partial differential equation. Thus, further investigation on the correct solutions is needed to better understand the problem. History: K. Sudhir served as the senior editor for this article. Funding: X. Kong acknowledges financial support from the Natural Science Foundation of China [Grants 72101243 and 72091212/72091210] and the Fundamental Research Funds for the Central Universities [Grant WK2040000033]. The research of Y. Yu is partially supported by the Hong Kong Research Grants General Proposal Fund [Grant 9043432], CityU [Grants 7005793 and 7005591], and the Laboratory for AI-Powered Financial Technologies. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 07322399
- Volume :
- 43
- Issue :
- 1
- Database :
- Complementary Index
- Journal :
- Marketing Science
- Publication Type :
- Academic Journal
- Accession number :
- 174880987
- Full Text :
- https://doi.org/10.1287/mksc.2021.0127