The authors develop a conceptual framework of the factors that motivate a retailer’s decision to rely on demand conditions and past prices in setting current and future prices. Specifically, they examine the circumstances under which retailers choose demand-based pricing versus past-price dependence for different brands and categories. Given scarce resources and costs of price adjustments, dema...

Recent research on pricing multiclass loss networks [19] has shown that the performance of optimal static pricing approaches that of optimal dynamic (congestion-dependent) pricing in the many small sources limit. In our own work with similar models, we have found it difficult to obtain large gains over static pricing in realistic settings, even when the many small sources assumption is violated...

Pricing series reflect multiple decisions (e.g., regular pricing and discounting) often made by multiple decision makers. For example, temporary price reductions (high frequency price changes) can be used to price discriminate in the short run, while regular price adjustments (low frequency price changes) reflect more strategic or long-term goals. It is therefore not implausible that the “react...

Consumer reservation price is a key concept in marketing and economics. Theoretically, this concept has been instrumental in studying consumer purchase decisions, competitive pricing strategies, and welfare economics. Managerially, knowledge of consumer reservation prices is critical for implementing many pricing tactics such as bundling, target promotions, nonlinear pricing, and one-to-one pri...

In contrast to single-product pricing models, multi-product pricing models have been much less studied because of the complexity of multi-product demand functions. It is highly nontrivial to construct a multi-product demand function on the entire set of nonnegative prices, not to mention approximating the real market demands to a desirable accuracy. Thus, many decision-makers use incomplete dem...

We consider a system of identical parallel queues served by a single server and distinguished only by the price charged at entry. A Poisson stream of customers joins the queue by a greedy policy that minimizes a ‘disutility’ that combines price and congestion. A special case of linear disutility is analyzed for which it is shown that the individually optimal greedy queue join policy is nearly s...

To study the process of pricing in capital market and look for a new way for decision support in financial market, according to the mechanism of artificial neural network, Capital Market Structure Model is developed in this case due to the influence between bargainer and price of asset in market. During proof-test, result of chaos forecast under the capital market structure model shows that cha...

Electricity swing options are Bermudan-style path-dependent derivatives on electrical energy. We consider an electricity market driven by several exogenous risk factors and formulate the pricing problem for a class of swing option contracts with energy and power limits as well as ramping constraints. Efficient numerical solution of the arising multistage stochastic program requires aggregation ...

We address the simultaneous determination of pricing and capacity investment strategies in a multi-period setting under demand uncertainty. In our model a monopolistic firm makes three decisions: capacity investment (or disinvestment), production (inventory), and price, all of which can be specified dynamically as a function of the state of the system. We analyze the optimal joint strategy and ...