We use the concept of time-consistent coherent risk measure to study a risk-averse firm’s inventory and price control activities. The model calls for worst-case analysis over a convex set of demand-distribution scenarios in every period. Structural characterization for an optimal inventory policy reminiscent of the risk-neutral counterpart is easy to achieve. More interestingly, mild monotone p...

We consider a system of identical parallel queues served by a single server and distinguished only by the price charged at entry. A Poisson stream of customers joins the queue by a greedy policy that minimizes a ‘disutility’ that combines price and congestion. A special case of linear disutility is analyzed for which it is shown that the individually optimal greedy queue join policy is nearly s...

In this paper, we propose a user centric based general framework for revenue maximization in highly competitive wireless networks. By applying dynamic pricing, each service provider operates an optimal policy that aims at maximizing its revenue. The problem is formulated using the Markov Decision Process (MDP) framework and Qlearning is applied to determine an optimal policy which maximizes the...

We use time-consistent coherent and Markov risk measure to study a risk-averse firm’s inventory and price control activities. Our dynamic programming model leads to optimal policy structures that are reminiscent of their risk-neutral counterparts. However, with risk aversion there emerge new patterns. First, monotone properties are derivable for the pricing policy when the convex risk set assoc...

This paper considers the pricing decision faced by a seller of bundles composed of a service and an associated product offered to customers on a subscription basis using a two-part tariff scheme. An optimal pricing policy that maximizes the profit of a firm is obtained using a dynamic programming approach and it is found that, in the long run, there is an optimal number of customers associated ...

W e study a revenue management problem involving competing firms. We assume the presence of a continuum of infinitesimal firms where no individual firm has any discernable influence over the evolution of the overall market condition. Under this nonatomic-game approach, the unanimous adoption of an equilibrium pricing policy by all firms will yield a market-condition process that in turn will el...

This paper describes an argumentation-based approach for automating the decision making process of an autonomous agent for pricing products. Product pricing usually involves different decision makers with different possibly conflicting points of view. Moreover, when considering firms in the retail business sector, they have hundreds or thousands of products to apply a pricing policy. Our approa...

I consider the optimal pricing problem faced by a freelance worker on an on-demand labor platform. Service requests arriving while the worker is busy are lost forever. Thus an hourly (or per-unit-time in general) pricing strategy appropriately captures the opportunity cost of accepting a job. With the view of improving capacity utilization in the face of arrival uncertainty, the worker may be t...

We study the impact of regulatory regimes on generic competition and pharmaceutical pricing using a unique policy experiment in Norway, where reference pricing (RP) replaced price cap regulation in 2003 for a sub-sample of off-patent products. We exploit a detailed panel dataset at product level covering a wide set of off-patent drugs before and after the policy reform. Off-patent drugs not sub...

Dynamic pricing is a standard practice that sellers use for revenue management. With the vast availability of pricing and inventory data on the Internet, it is possible for consumers to become aware of the pricing strategies used by sellers and to develop strategic responses. In this paper, we study the strategic response of consumers to dynamic prices for perishable products. As price fluctuat...