The Black–Scholes Option pricing model (OPM) developed in 1973 has always been taken as the cornerstone of option pricing model. The generic applications of such a model are always restricted by its nature of not being suitable for fuzzy environment since the decision-making problems occurring in the area of option pricing are always with a feature of uncertainty. When an investor faces an opti...

Asymmetries in price adjustment can reconcile contrasts between rapid price movements in inflationary episodes, consistent with classical theories of flexible pricing, and sluggish price responses in contractions, consistent with Keynesian theories of sticky price adjustments. Nonparametric analysis of SIC two-digit industry data indicates that negative asymmetries are more pronounced for real ...

This paper studies pricing decisions and service decisions of a product in a dual-channel (i.e., the traditional retail channel and direct online channel) supply chain consisting of one manufacturer and one retailer. We consider two types of channel pricing decisions (i.e., consistent pricing and inconsistent pricing) in the scenario which the manufacturer holds more bargaining power than the r...

We consider dynamic pricing and replenishment decisions for a production/inventory system modeled by a make-to-stock queue. The potential customer demand is generated by a MarkovModulated (environment-dependent) Poisson process and the actual demand depends on the price offered at the time of the transaction. Using a Markov Decision Process framework, we obtain results on the structure of the o...

Despite uncertainty being intrinsic to economic evaluation of health care, existing techniques for handling uncertainty remain underdeveloped compared to the formal techniques commonly applied in the business sector. This paper develops an alternative approach to handling uncertainty in economic evaluation based on 'option-pricing' techniques. The presence of uncertainty and the degree of irrev...

Economists have long understood the importance of co-locating decision authority with the knowledge that is valuable to those decisions. Following this prescription, marketing scholars have developed strong theoretical arguments in favor of delegating pricing authority to the sales force. Empirical work, however, reveals a significant number of sales organizations yielding only minimal authorit...

a r t i c l e i n f o Keywords: Business-to-business pricing Price setting Industrial pricing decisions Behavioral bias in pricing Business-to-business pricing research has often focused on developing rational and normative frameworks and models for pricing issues, strategies and tactics. However, there has been less attention given to behavioral models that help us understand the realities of ...