As is the case with traditional markets, the sellers on the Internet do not usually know the demand functions of their customers. However, in such a digital environment, a seller can experiment different prices in order to maximize his profits. In this paper, we fit the dynamic pricing model of Rothschild [11] to match the pricing problem of a Web-store. In this setting, we define the optimizat...

This article analyses the pricing policy equilibria emerging in a duopoly when one firmmay choose whether to engage in behaviour-based price discrimination or uniform pricing while the rival price discriminates. The question we address is: should a firm price discriminate when facing a price discriminating rival? Our main conclusion is that, if the consumers are sufficiently myopic, it is bette...

It is believed that the primary economic solution to climate change is an introduction of a carbon pricing system anchored to the social cost of carbon, either as a form of tax or tradable permits. Potentially significant externalities accompanying the introduction of emission-reducing technologies, however, imply that the standard argument does not capture some important aspects for the design...

The theory of sponsored search has been developing rapidly although with disagreement in scientific circles on answers to some basic questions about sponsored search. This study focuses on two of these questions, namely, if a search engine seeks to maximize profits, 1) what should its pricing policy be and 2) what should its ranking policy be. This paper uses experiments with economically motiv...

We examine the value of price commitment for a nonprofit organization using individual level purchases over a series of concert performances. To decide on a pricing policy, the performing arts organization must be able to accurately measure when each ticket will be sold and what type of audience will purchase the tickets for each performance. We use a competing hazards framework to model the ti...

The technological advancement in learning has made it possible for students to study beyond space and time restrictions, known as online learning. Impacted by the pandemic an extended period, most have adapted and, even more, realized vast benefits of despite all minor disadvantages. As a result, worldwide institutions, including Indonesia, are now offering degrees courses. Previous studies sho...