Revenue management techniques, practiced for many years in the airline and hotel industries, have gained popularity with retailers. One such technique — dynamic pricing — refers to the intelligent process of controlling prices over a course of a sales season in a way that maximizes expected revenues. In this paper, we consider a retailer who sells a fashionable good during a short sales season,...

We study dynamic pricing policies for a monopolist selling perishable products over a finite time horizon to buyers who are strategic. Buyers are strategic in the sense that they anticipate the firm’s pricing policies. We are interested in situations in which auctions are not feasible and in which it is costly to change prices. We begin by showing that unless strategic buyers expect shortages d...

INTRODUCTION Food pricing policies to promote healthy diets, such as taxes, price manipulations, and food subsidies, have been tested in different settings. However, little consensus exists about the effect of these policies on the availability of healthy and unhealthy foods, on what foods consumers buy, or on the impact of food purchases on consumer health outcomes. We conducted a systematic r...

Source of earnings analysis has long been a staple of life insurance policy pricing and profitability monitoring. It has grown in importance with the advent of universal life insurance and of similar contracts with non-guaranteed benefits or charges. SFAS 97 now mandates the use of source of earnings analysis for GAAP reporting of universal life-type contracts. Source of earnings analysis is eq...

This paper investigates and compares airport pricing policies under various types of competition, considering both per-passenger and per-flight charges at congested airports. We show that an airport requires both pricing instruments to achieve the first-best outcome, and we distinguish their role by showing that congestion externalities need to be addressed through per-flight tolls whereas the ...