In the area of dynamic revenue management, optimal pricing policies are typically computed on the basis of an underlying demand rate model. From the perspective of applications, this approach implicitly assumes that the model is an accurate representation of the real world demand process and that the parameters characterizing this model can be accurately calibrated using data. In many situation...

Mail-order and internet sellers must decide how customers pay shipping charges. Typically, these sellers choose between two pricing policies: either “uniform pricing,” where the firm delivers to any customer at a fixed delivery charge (that may be volume dependent), or “mill pricing,” where the firm bills the customer a distance-related shipping charge. This paper studies price competition betw...

A standard result in regulation is that efficiency requires that marginal prices be set equal to marginal costs. This paper performs an empirical test of marginal cost pricing in the natural gas distribution market in the United States during the period 1989-2008. For all 50 states we reject the null hypothesis of marginal cost pricing. Departures from marginal cost pricing are particularly sev...

Virtually all manufacturing and service industries are susceptible to periods of supply and demand mismatches. Due to capacity limitations and demand uncertainties, firms producing multiple products may frequently encounter instances where one of their products faces shortages while the other has excess inventories. In order to alleviate the level of such inventory mismatches, several tools may...

Dynamic pricing for a network of resources over a finite selling horizon has received considerable attention in recent years, yet few papers provide effective computational approaches to solve the problem. We consider a resource decomposition approach to solve the problem and investigate the performance of the approach in a computational study. We compare the performance of the approach to stat...

The single-period problem (SPP), also known as the newsboy or news-vendor problem, is to ®nd the order quantity which maximizes the expected pro®t in a single period probabilistic demand framework. Interest in the SPP remains unabated and many extensions to it have been proposed in the last decade. These extensions include dealing with di€erent objectives and utility functions, di€erent supplie...