Capacity and pricing policies with consumer overflow behavior

Capacity and pricing policies with consumer overflow behavior

We analyze consumers’ choice and overflow behavior between two potential market segments with different fares, capacity allocated, and then develop the optimal capacity and pricing polices assuming such consumers’ strategic behavior can be observed. Every consumer prefers to choose a fare to obtain their utmost value surplus, and select the second if the first-best choice cannot be satisfied. O...

Hedonic Pricing under Uncertainty: A Theoretical Consumer Behavior Model

A model of consumer behavior has been formulated by using an additive utility function and the hedonic pricing approach, in a virtual market. Since, there is a time lag between ordering and purchasing products (goods and services) online and receiving them, it means the consumer makes decision under uncertainty. The level of satisfaction with products with distinctive characteristics is describ...

Optimal pricing and replenishment policies for instantaneous deteriorating items with backlogging and trade credit under inflation

In this paper we develop an economic order quantity model to investigate the optimal replenishment policies for instantaneous deteriorating items under inflation and trade credit. Demand rate is a linear function of selling price and decreases negative exponentially with time over a finite planning horizon. Shortages are allowed and partially backlogged. Under these conditions, we model the ret...

Signaling Virtue: Charitable Behavior Under Consumer Elective Pricing

Pricing policies