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...

Cloud computing promises on-demand provisioning of resource to applications and services. In cloud computing, a provider leases its computing resources in the form of virtual machines to users, and a price is charged for the period they are used. Static pricing is the dominant pricing strategy in today’s market but dynamic pricing helps to improve the revenue. The main challenge is to design an...

There is a strong competition from low-priced imported catfish fillets resulting in a declining market share for domestic farm-raised catfish fillets. To match the competition, catfish processors are embarking on pricing policy measures that are volume-oriented instead of profitor image-oriented. This could be an effective short-run pricing policy measure for optimal longrun sustainability and ...

We study a joint inventory and pricing problem in a single-stage system with a positive lead time. We consider both additive and multiplicative demand forms. This problem is, in general, intractable due to its computational complexity. We develop a simple heuristic that resolves this issue. The heuristic involves a myopic pricing policy that generates each period’s price as a function of the in...

Recently there has been a signi"cant decline in the degree to which "rms &pass through' changes in costs to prices, a decline that is frequently characterized as a reduction in the &pricing power' of "rms. The decline appears to be associated with the decline in in#ation in many countries. The decline has important implications for monetary policy because it a!ects both forecasts of in#ation an...

We consider a joint inventory-pricing problem in which buyers act strategically and bid for units of a firm’s product over an infinite horizon. The number of bidders in each period, as well as the individual bidders’ valuations, are random but stationary over time. There is a holding cost for inventory and a unit cost for ordering more stock from an outside supplier. Backordering is not allowed...

August 26, 2005 Abstract Dynamic pricing is a standard practice that firms use for revenue management. With the vast availability of pricing data on the Internet, it is possible for consumers to become aware of the pricing strategies used by firms and to develop strategic responses. In this paper, we study the strategic response of customers to dynamic prices for perishable products. As price f...

Given rising pharmaceutical expenditures and the widespread use of reference pricing as a costcontainment instrument abroad, we systematically reviewed the evidence evaluating reference pricing policies. We performed a structured electronic search of peer-reviewed journals for studies published before that reported on the effects of reference pricing policies on medication use, payer and patien...

1 William Vickrey Contributions to Public Policy Bill Vickrey's cast of mind was that of a theorist. His interests, however, lay in public policy. This combination of traits-in addition to genius-resulted in his producing a magnificent body of research in applied economic theory, but at the same time in his having only limited success in the public policy arena. The apparent failure of his crus...

The surge of road pricing projects in the U.S. and around the globe over the past fifteen years has been enabled by a set of new communication and transportation technologies. There is currently a wide array of technical configurations ranging from systems based on “tried and true” shortrange radio communications to experimental systems relying on global positioning satellites. These technologi...