Currently, the Internet service provider market offers two different types of pricing plans. In the USA, the predominant pricing plan is a flat-rate plan. In Europe and Asia, the predominant one is a per-minute pricing plan. Enrolled in such a pricing plan, users have to pay for the connect time to the Internet. Although Internet Service Providers (ISPs) have competed heavily for users in these...

This paper reports on the results of a dynamic pricing experiment that compares the performance of three popular pricing programs–hourly pricing, critical peak pricing, and critical peak-pricing with a rebate–for a representative sample from the population of households in the District of Columbia. The sampled households differ in terms of their income levels, electricityusing appliance holding...

Several real problems in telecommunication, transportation, and distribution industries can be well analyzed by network flow models. In revenue management, pricing plays a primary role which increases the profit generated from a limited supply of assets. Pricing decision directly affects the amount of service or product demand. Hence, in traditional maximum flow problem, we assume that the dema...

We organize the existing theoretical pricing research into a new two-level framework for industrial goods pricing. The first level consists of four pricing situations: New Product, Competitive, Product Line, and Cost-based. The second level consists of the pricing strategies appropriate for a given situation. For example, within the new product pricing situation, there are three alternative pri...

The stochastic nature of demand suggests that firms can benefit from applying dynamic pricing strategies, where pricing decisions are postponed until information about demand is revealed. Many service providers, however, announce prices in advance and do not frequently adjust them as a response to market conditions (i.e., static pricing). This may seem suboptimal when demand is high and the fir...