The integration of telecommunications and data networks enables Internet Service Providers (ISPs) to develop increasingly services to attract customers. Designing rational pricing plans is very important for ISPs to reflect actual cost and to promote different services. In this paper, we discuss the applicability of the duration-based pricing scheme for charging Internet services that constantl...

Recent years have seen advances in research and management practice in the area of pricing, and particularly in dynamic pricing and revenue management. At the same time, researchers and managers have made dramatic improvements in production and supply chain management. The interactions between pricing and production/supply chain performance, however, are not as well understood. Can a firm benef...

This paper studies a one-shot inventory replenishment problem with dynamic pricing. The customer arrival rate is assumed to follow a geometric Brownian motion. Homogeneous customers have an isoelastic demand function and do not behave strategically. We find a closed-form optimal pricing policy, which utilizes current demand information. Under this pricing policy the inventory trajectory is dete...

This article aims to define a value-based approach to pricing and reimbursement for off-patent originators using a multiple criteria decision analysis (MCDA) approach centered on a systematic analysis of current pricing and reimbursement policies in China. A drug price policy review was combined with a quantitative analysis of China's drug purchasing database. Policy preferences were identified...

We introduce a dynamic pricing model for a monopolistic company selling a perishable product to a finite population of strategic consumers (customers who are aware that pricing is dynamic and may time their purchases strategically). This problem is modeled as a stochastic dynamic game in which the company’s objective is to maximize total expected revenues, and each customer maximizes the expect...

Nowadays, traffic management policy in metropolitans is focused on increasing the share of public transit. The limitation of supply and slowing growth of road infrastructures have provided congestion for users who choose personal cars. Therefore, applying demand management policies which decrease the utility of personal cars and increase the tendency to public transit can be very important. Con...

This paper studies the optimal pricing problem for firms using two types of restrictions. Linear programming techniques will be used to derive the optimal pricing policies under three different scenarios, namely the nested restrictions, mutually exclusive restrictions and the general case. For the first two scenarios, there exists an optimal pricing policy consisting of at most four price level...

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...

This paper studies pricing strategies for networks with stochastic capacity variation. Call-level simulation is used to compare the profit generated with four different pricing models, and with different policies for the management of call dropping episodes in the network. Both user-oriented and network-oriented performance metrics are considered. The simulation results show that the choice of ...