The newsvendor problem with pricing decision provides an important vehicle for examining how operational problems interacts with marketing issues to influence decision-making at the firm level. This paper considers the newsvendor problem with pricing and its extensions. We try to answer two questions: (1) how to model the price-dependent stochastic demand and (2) how to derive the combined pric...

A monopolist offers a product to a market of consumers with heterogeneous quality preferences. Although initially uninformed about the product quality, they learn by observing past purchase decisions and reviews of other consumers. Our goal is to analyze the social learning mechanism and its effect on the seller’s pricing decision. Consumers follow an intuitive, nonBayesian decision rule. Under...

This paper studies the subject of pricing decisions of online dual-channel based on hybrid decisions wherein a manufacturer introduces direct online marketing channels beyond the traditional online retail channels. The purpose is to study how to balance the interests of different online channels and maximize the overall efficiency of the channel. Having considered both online channels’ satisfac...

This paper studied pricing, service level, and production quantity decision problems in a supply chain with one manufacturer and one retailer under demand and production cost disruptions. The joint impact of demand and production cost disruptions on optimal pricing, service level, and production decisions in centralized and decentralized supply chain was analyzed, respectively. By solving the o...

The supplier and buyers, with different objectives and self-interest, are separate economic entities acting independently and opportunistically to maximize their individual profits. In this paper, a GBA model in the B2B market is studied, where one supplier faces 2 different retailers, who cooperate in the order decision making. Firstly, the optimal ordering decision of the retailers was analyz...

The main objective of this report is to describe a decision-support system for dynamic retail pricing and promotion planning. Our weekly demand model incorporates price, reference price effects, seasonality, article availability information, features and discounts. Building on previous research, we quantify demand interdependencies and integrate the resulting profitlifting effects into the opti...

In this paper, we present steps towards a model-driven financial decision support system (FDSS) to pricing options on currency futures, which can be embedded in a high-frequency trading process. Due to the difficulty of option valuation, we provide an alternative heuristic option pricing approach with neural networks. We show that the use of neural networks is not only suitable in generating ac...

W introduce and analyze a model that explicitly considers the timing effect of intertemporal pricing— the concept, found in practice, that demand during a sale is increasing in the time since the last sale. We present structural results that characterize the interaction between the decision to hold a sale and the inventory-ordering decision. We show that the optimal inventory-ordering policy is...

In order to explain the consumer decision process in the fixed pricing group buying (FPGB) context, this study proposed an FPGB decision model from the social perspective. To reflect the social perspective, the proposed FPGB decision model included social factors such as network externalities and subjective norm as triggers for shopping motivations. According to the analysis results, all social...

Advances in technology enable sellers to price discriminate based upon a customer’s previous purchase decision. E‐tailers can track items already in a shopping cart and item level RFID tags enable retailers to do the same in bricks and mortar stores. As retailers attempt to leverage the information made available from these technologies, it is important to understand how this new visibility imp...