We study the effects of different pricing strategies available to a production–inventory system with capacitated supply, which operates in a fluctuating demand environment. The demand depends on the environment and on the offered price. For such systems, three plausible pricing strategies are investigated: static pricing, for which only one price is used at all times, environment-dependent pric...

In the face of declining state support, many universities have introduced differential pricing by undergraduate program as an alternative to across-the-board tuition increases. This practice aligns price more closely with instructional costs and students’ ability to pay postgraduation. Exploiting the staggered adoption of these policies across universities, this paper finds that differential pr...

W examine the problem of how a content provider, specifically the National Academies Press (NAP), can optimally price the different forms of its product—print and PDF—that it sells online. Whereas products in the traditional product line generally tend to be substitutes, the different content product forms could range from being substitutes to being complements across customers. Thus the conten...

Recently, the need for health care services has increased gradually and the limitations in sources allocated for this area have been recognized. Moving from this fact, it has gained a supreme importance to determine what health programs or technologies will be given priority. According to Danzon (Reference pricing: theory and evidence, reference pricing and pharmaceutical policy: perspectives o...

Pricing Internet bandwidth is of growing importance as the Internet grows and matures. While many residential consumers have "flat rate" Internet pricing, the pricing policies facing campus, regional, and metropolitan-area networks are becoming more complex. While it may be possible to price every bit or packet of data, this pricing policy requires significantly additional accounting and billin...

To address roadway congestion problems, communities throughout the nation that are at risk for air quality problems are proposing major and costly beltway highway projects. In this study, an integrated land use and transportation model and an advanced travel demand model linked to a land allocation model are applied to evaluate different combinations of transit and highway investment alternativ...

We develop and analyze a normative and structurally stochastic model of innovation diffusion by depicting the market at an aggregate level. Model dynamics are defined through the flow pattern of individuals that move from the innovation unaware stage, to the innovation aware, and ultimately to the adopter stages. The stochastic evolution of this stage-wise transition unfolds according to tracta...

In many industrial settings, managers face the problem of establishing a pricing policy that maximizes the revenue from selling a given inventory of items by a fixed deadline, with the full inventory of items being available for sale from the beginning of the selling period. This problem arises in a variety of industries, including the sale of fashion garments, flight seats, and hotel rooms. We...

We study the effects of different pricing strategies available to a continuous review inventory system with capacitated supply, which operates in a fluctuating environment. The system has a single server with exponential processing time. The inventory holding cost is nondecreasing and convex in the inventory level, the production cost is linear with no set-up cost. The potential customer demand...

This position paper argues for research in the development of focused solutions for dynamic pricing, service-level agreements and negotiation for eServices in a digital economy. Thereby the authors have a main focus on the development of an independent negotiation protocol, which satisfies the needs and preferences of customers and service providers, also with a certain focus on legal aspects o...