This paper proposes a dynamic pricing and revenue-driven service federation strategy based on Deep Q-Network (DQN) to instantly automatically decide across different provider domains, each introduces prices offering its customers towards other domains. A model is considered in this work the analysis of real data collected from public cloud provider, upon arrival process as result price changes ...

Taking advantage of lower foreign tax rates using transfer pricing and taking advantage of lower production costs using offshoring are two strategies that global companies use to increase their profitability. Evidence suggests that firms employ these strategies independently. We study how global firms can jointly leverage tax and cost differences through coordinated transfer pricing and offshor...

We consider dynamic pricing competition between two firms offering vertically differentiated products to strategic customers who are inter-temporal utility maximizers. Our model can be viewed as a competitive version of the classical model of Besanko and Winston (1990). We show that there exists a Markov perfect equilibrium (MPE) in mixed strategy in the game. Furthermore, we give a simple cond...

We consider the dynamic pricing problem of a monopolist firm in a market with repeated interactions, where demand is sensitive to the firm’s pricing history. Consumers have memory and are prone to human decision making biases and cognitive limitations. As the firm manipulates prices, consumers form a reference price that adjusts as an anchoring standard based on price perceptions. Purchase deci...

We study the problem of how to optimize a cloud service provider’s pricing policy so as to better compete with other providers. Different from previous work, we take both the evolution of the market and the competition between multiple cloud providers into consideration while optimizing the pricing strategy for the provider. In order to compute the optimal pricing policy, we decompose the optim...

We consider the joint pricing and inventory control problem for a single product with a finite horizon and periodic review. The demand distribution in each period is determined by an exogenous Markov chain. Pricing and ordering decisions are made at the beginning of each period and all shortages are backlogged. The surplus costs as well as fixed and variable costs are state dependent. We show t...

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...

Carbon trading policy and consumer environmental awareness are increasingly important to manufacturers’ carbon emission reduction pricing. To analyze their strategy selection of pricing, this paper develops three game models, where two manufacturers could choose no cooperation (NC), only in (SC), or simultaneous pricing (CC). By solving these models comparing R&D levels, net emissions, ...

By employing dynamic pricing, the act of changing prices over time within a marketplace, sellers have the potential to increase their revenue by selling goods to buyers "at the right time, at the right price." Software agents have been used in electronic commerce systems to assist buyers, but there is limited use of selling agents in today's markets. As dynamic pricing systems become necessary ...

In the paper by Melnikov and Petrachenko ‘On option pricing in binomial market with transaction costs,’ Finance Stoch. 9 (2005), 141–149, a procedure is put forward for pricing and replicating an arbitrary European contingent claim in the binomial model with bid-ask spreads. We present a counter-example to show that the option pricing formula stated in that paper can in fact lead to arbitrage. ...