In this paper, we investigate the information release and pricing strategies for a seller who can take customer pre-orders before the release of a product. The pre-order option enables the seller to sell a product at an early date when consumers’ valuations are relatively homogeneous. We find that the optimal pricing strategy is discontinuous with respect to the amount of information available ...

Increased availability of high-quality customer information has fueled interest personalized pricing strategies, i.e., strategies that predict an individual customer’s valuation for a product and then o↵er a customized price tailored to that customer. While the appeal of personalized pricing is clear, it may also incur large costs in the form of market research, investment in information techno...

The competitors in the airline industry often rely on pricing strategy to capture more sales as a main mean of competition. Thus, dynamic pricing is often utilized to maximize profit while allowing better pricing against competition at the same time. In order for dynamic pricing to be effective, airline company has to take in consideration both internal and external information. Tactical pricin...

In this paper,we investigate the pricing and return policy issueof one-echelon green supply chain, contain a manufacture who produces two type of products: green and non-green products. These products have a same functional but in selling price and environmentally issues have different effects. Also we consider return policy for both products that can stimulate the customer valuation. We develo...

Reactive power as a utility of ancillary service in restructured environment is supplied by Independent System Operator (ISO). Due to the particular importance of optimal pricing strategy in the power market, the study aims to investigate this problem more closely. To this end, first the problems of restructuring, reactive power generation and its associated costs thereof were reviewed and diff...

Pricing Asian options based on the arithmetic average, under the Black and Scholes model, involves estimating an integral (a mathematical expectation) for which no analytical solution is available. Pricing their American-style counterparts, which provide early exercise opportunities, poses the additional difficulty of solving a dynamic optimization problem to determine the optimal exercise stra...

The Quanto option is a cash-settled, cross-currency derivative in which the underlying asset has a payoff in one country, but the payoff is converted to another currency in which the option is settled. Thus, the correlation between the underlying asset and currency exchange rate plays an important role on pricing such options. Market observations give clear evidence that financial quantities ar...

With the new realities of the digital age, print newspapers are experimenting with different pricing models for their online content. Using NYT’s paywall rollout as a natural experiment, our study finds that a firm’s information pricing policy influences the pattern and effectiveness of online word of mouth (WOM) in social media. Using difference-in-difference-indifferences analysis, we find th...

A dual-channel supply chain system composed of one manufacturer and one retailer is considered in this paper, which existed uncertainty demands in both distribution channels and capital constraint on retailer. It set up the profit model of manufacturer dominated dual-channel supply chain system, studied to the optimal pricing and inventory strategies of decentralized and centralized supply chai...