pricing and advertising are two important marketing strategies in the supply chain management which lead to customer demand’s increase and therefore higher profit for members of supply chains. this paper considers advertising, and pricing decisions simultaneously for a three-level supply chain with one supplier, one manufacturer and one retailer. the amount of market demand is influenced by pri...

After reading this chapter you will: n appreciate the strategic significance of pricing decisions in marketing strategy n understand the approaches to pricing of the economist and accountant, together with their contributions and limitations in the context of the price setting process n apply a framework to pricing decisions based around the key inputs to these decisions n understand the main p...

The increasingly dynamic nature of businessto-business electronic commerce has produced a recent shift away from fixed pricing and toward flexible pricing. Flexible pricing, as defined here, includes both differential pricing, in which different buyers may receive different prices based on expected valuations, and dynamic-pricing mechanisms, such as auctions, where prices and conditions are bas...

Finding the right pricing for music downloads is of ample importance to the recording industry and music download service providers. For the recently introduced music downloads, reference prices are still developing and to find a revenue maximizing pricing scheme is a challenging task. The most commonly used approach is to employ linear pricing (e.g., iTunes, musicload). Lately, subscription mo...

This research compares derivative pricing model and statistical time-series approaches to hedging. The finance literature stresses the former approach, while the applied economics literature has focused on the latter. We compare the out-of-sample hedging effectiveness of the two approaches when hedging commodity price risk using futures contracts. For various methods of parameter estimation and...

Review of proposed architectures and mechanisms for charging and pricing in IP and ATM networks Charging is becoming a more and more interesting issue in the Internet as well as in ATM networks. This report first gives an overview on pricing schemes including a rough classification. Also some problems associated especially with Internet pricing are addressed. The most important concepts for pri...

We consider various axioms for customer behaviour using utility functions and socalled “reservation prices” and then based on these axioms, we discuss some mathematical models (employing integer programming, convex programming and classical nonlinear programming) for deciding on product prices to maximize the total profit (or perhaps another suitable objective function also involving minimizati...

Pricing theory is concerned with determining a realistic market-related price of an asset that is not yet marketed. There are several approaches to this issue, most of which use systems theory concepts, such as optimization, dynamic recursion, probability, stochastic process, and control. Pricing theory has therefore benefited greatly from systems theory. Systems theory can also benefit from pr...

There are many real cases where a company needs to determine the price of its products so as to maximise its revenue or profit. To do so, the company must consider customers’ reactions to these prices, as they may refuse to buy a given product or service if its price is too high. This is commonly known in literature as a pricing problem. This class of problems, which is typically bilevel, was f...

Financial models are largely used in option pricing. These physical models capture several salient features of asset price dynamics. The pricing performance can be significantly enhanced when they are combined with nonparametric learning approaches, that empirically learn and correct pricing errors through estimating state price distributions. In this paper, we propose a new semiparametric meth...