In this paper, three dynamic pricing models are developed and analyzed. We assume a limited number of a particular asset is offered for sale over a period of time. This asset is perishable and can be an inventory or a manufacturing capacity. During each period, the seller sets a price for this asset. This price is selected from a predetermined discrete set. The maximum amount which a customer i...

This study aims to estimate the function of copper consumption using the Johansen approach in time series data, between 1991-2011 in Iran. The literature review of specialized consumption and demand functions shows factors influencing the consumption of copper including copper price variables, aluminum price as a substitute commodity, oil price as a complementary commodity, and industrializatio...

Sales in a new market generally follow a hockey-stick pattern: after commercialization, sales are very low for some time before there is a dramatic “takeoff” in growth. Reported sales takeoffs across products vary widely from a few years to several decades. Prior research identifies new firm entry or price declines as key factors that relate to the timing of a sales takeoff in new markets. Howe...

We present an information good pricing model with persistently heterogeneous consumers and a rising marginal propensity for them to pirate. Three offsetting pricing mechanisms occur: skimming, compressing price changes, and delaying product launch. We identify a novel trade off in piracy’s effect on welfare. We find that piracy quickens sales times and raises welfare in fixed capacity markets, ...

We investigate the problem of optimal bidding for a firm that in each period procures items to meet a random demand by participating in a finite sequence of auctions. We develop a new model for a firm where its item valuation derives from the sale of the acquired items via their demand distribution, sale price, acquisition cost, salvage value and lost sales. We establish monotonicity properties...

Temporary price reductions (sales) are common for many goods and naturally result in a large increase in the quantity sold. We explore whether the data support the hypothesis that these increases are, at least partly, due to demand anticipation: at low prices, consumers store for future consumption. This effect, if present, has broad economic implications. We test the predictions of an inventor...

Do online price estimates directly impact sales prices in the real estate market, and if so, how large is that impact? We develop an estimation model that uses the di↵erence between list prices and online price estimates to proxy for house specific unobservables. To account for neighborhood specific unobservables, we use neighborhood first di↵erencing. Using house price estimates, list prices a...

A central parameter for evaluating tax policies is the price elasticity of demand for cigarettes. But in many countries this parameter is difficult to estimate reliably due to widespread smuggling, which significantly biases estimates using legal sales data. An excellent example is Canada, where widespread smuggling in the early 1990s, in response to large tax increases, biases upwards the resp...

Due to the rapid growth of e-commerce sales, many retailers have been shifting to omni-channel operations by integrating their network of brick-and-mortar stores with their nascent online channel. However, existing analytics infrastructure and models have not been able to keep pace with this development. We identify and address new omni-channel operational challenges: (i) in-store inventory is ...

in this research two models for pricing and inventory decisions of complementary products with and without deterioration assumption are developed. in both of them, we assumed that the demand function of each product is dependent on own price and the price of another one. the aim of this paper is to optimize the total profit of integrated system such that the optimal values for the price of each...