We study the revenue-optimal pricing strategies of a monopolist selling a divisible good (service) that exhibits positive externalities to consumers embedded in a social network. The positive externalities in our model mean that a consumer's usage level depends directly on the usage of his neighbors in the network. Optimal pricing may therefore involve offering different prices based on consume...

The pricing problem in a multi-period setting is a challenging problem and has attracted much attention in recent years. In this thesis, we consider a monopoly and an oligopoly pricing problem. In the latter, several sellers simultaneously seek an optimal pricing policy for their products. The products are assumed to be differentiated and substitutable. Each seller has the option to set prices ...

Standard sticky information pricing models successfully capture the sluggish movement of aggregate prices in response to monetary policy shocks but fail at matching the magnitude and frequency of price changes at the micro level. This paper shows that in a setting where firms choose when to acquire costly information about different types of shocks, strategic complementarities in pricing genera...

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...

INTRODUCTION New Zealand's Pharmaceutical Management Agency (PHARMAC) manages the list of medicines available for prescribing with government subsidy, within a fixed annual medicines budget. PHARMAC achieves this through a mix of pricing strategies including reference pricing. In 2011, PHARMAC applied generic reference pricing to olanzapine tablets. AIM This study sought to evaluate change in...

The market for selling reusable products (e.g., car rental, cloud services and network access resources) is growing rapidly over the last few years, where service providers maximize their revenues through setting the optimal prices. While there has been lots of research on pricing optimization, existing works often ignore dynamic property of demand and the competition among providers. Thus, exi...

1 Public policy development for electricity restructuring emphasizes institutions for market operations in network systems. The different models present alternatives for the mix of responsibilities of the necessary system operator. Customer flexibility and choice require efficient pricing; inefficient pricing necessarily limits market flexibility. The analysis points to an integrated independen...

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 investigate the operational decisions and resulting profits for a supply chain facing price-dependent demand under a policy where there is an ex-ante commitment made on the retail price markup. We obtain closed-form solutions for this policy under the assumption of a multiplicative demand function and we analytically compare its performance with that of a traditional price-only policy. We co...