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Journal ArticleDOI

Dynamic Pricing in the Presence of Inventory Considerations: Research Overview, Current Practices, and Future Directions

Wedad Elmaghraby, +1 more
- 01 Oct 2003 - 
- Vol. 49, Iss: 10, pp 1287-1309
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TLDR
In this paper, a review of the literature and current practices in dynamic pricing is presented, where the focus is on dynamic (intertemporal) pricing in the presence of inventory considerations.
Abstract
The benefits of dynamic pricing methods have long been known in industries, such as airlines, hotels, and electric utilities, where the capacity is fixed in the short-term and perishable. In recent years, there has been an increasing adoption of dynamic pricing policies in retail and other industries, where the sellers have the ability to store inventory. Three factors contributed to this phenomenon: (1) the increased availability of demand data, (2) the ease of changing prices due to new technologies, and (3) the availability of decision-support tools for analyzing demand data and for dynamic pricing. This paper constitutes a review of the literature and current practices in dynamic pricing. Given its applicability in most markets and its increasing adoption in practice, our focus is on dynamic (intertemporal) pricing in the presence of inventory considerations.

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Citations
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Journal ArticleDOI

Dynamic Pricing for Project-Oriented Production: A Comparison to Current Pricing Techniques

TL;DR: In this article, a new heuristic that exploits the flexible capacity of project-oriented production (POP) industries is developed for such industries and computational results are presented for its performance over a range of dynamic pricing environments, and the numerical results indicate that the heuristic significantly outperforms other heuristics in the literature for jobs that fall into the POP category.
Book ChapterDOI

Coordination of Inventory Distribution and Price Markdowns for Clearance Sales at Zara

TL;DR: In this article, a model-based approach is proposed to dynamically coordinate inventory and pricing decisions for unsold merchandise during the last month of the regular season and then clearance sales at Zara stores.
Proceedings ArticleDOI

Joint Pricing-Production Decisions with Stochastic Price-Dependent Demand

TL;DR: In this article, the authors present a joint decision model which combines the decisions of setting selling price and determining manufacturing batch size with the ultimate objective of maximizing a utility function, the demand for the product is both price-dependent and uncertain.
Dissertation

Learning Algorithms for Stochastic Dynamic Pricing and Inventory Control.

Boxiao Chen
TL;DR: Chen et al. as mentioned in this paper considered joint pricing and inventory control problems in which the customer's response to selling price and the demand distribution are not known a priori, and the only available information for decision-making is the past sales data.
Book ChapterDOI

An Exploration of Dynamic Pricing in the National Hockey League

TL;DR: In this paper, the authors studied the effect of opponents on the dynamic pricing of tickets to NHL games and found that the greatest impact on dynamic ticket prices is due to popular opponents, while uncertainty of outcome is only significant in a "non-traditional" hockey market with many entertainment substitutes.
References
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Book

The Economics of Welfare

TL;DR: Aslanbeigui et al. as mentioned in this paper discussed the relationship between the national dividend and economic and total welfare, and the size of the dividend to the allocation of resources in the economy and the institutional structure governing labor market operations.
Journal ArticleDOI

A New Product Growth for Model Consumer Durables

TL;DR: A growth model for the timing of initial purchase of new products is developed and tested empirically against data for eleven consumer durables, and a long-range forecast is developed for the sales of color television sets.
Book ChapterDOI

A new product growth model for consumer durables

Frank M. Bass
- 01 Jan 1976 - 
TL;DR: In this article, a growth model for the timing of initial purchase of new products is proposed, and a behavioral rationale for the model is offered in terms of innovative and imitative behavior.
Posted Content

Auctions and Bidding

TL;DR: Hayek as mentioned in this paper argued that the problem of rational economic order is determined by the fact that the knowledge of the circumstances of which we must make use never exists in concentrated or integrated form but solely as the dispersed bits of incomplete and frequently contradictory knowledge which all the separate individuals possess.
Journal ArticleDOI

Noncooperative collusion under imperfect price information

Edward J. Green, +1 more
- 01 Jan 1984 - 
TL;DR: In this paper, the authors examine the nature of cartel self-enforcement in the presence of demand uncertainty and present a model of a non-cooperatively supported cartel, and the aspects of industry structure which would make such a cartel viable.
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