Journal ArticleDOI
Dynamic Pricing in the Presence of Inventory Considerations: Research Overview, Current Practices, and Future Directions
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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.read more
Citations
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Journal ArticleDOI
Risk averse retail pricing with robust demand forecasting
TL;DR: In this article, the authors proposed a robust optimization methodology that incorporates both demand uncertainty and the decision maker's degree of risk aversion for a linear demand function, price expressions are derived, and a criterion is proposed for defining the degree of fear aversion, and the resulting model is also applied to an exponential demand case to better reflect a more realistic retail setting.
Journal ArticleDOI
Welfare Analysis of Dynamic Pricing
Ningyuan Chen,Guillermo Gallego +1 more
TL;DR: In this article, the authors examine the impact of dynamic pricing on consumer surplus and show that dynamic pricing is often win-win, with both firms and consumers being better off relative to the alternative of offering an optimal static price.
Journal ArticleDOI
An effective pricing framework in a competitive industry: Management processes and implementation guidelines
TL;DR: In this article, a conceptual framework for pricing strategy development and execution in a competitive industry is proposed, which consists of a three-phase pricing management process of planning, execution and analysis; a set of implementation guidelines ensuring completeness, accuracy, responsiveness and flexibility.
Journal ArticleDOI
Revenue Management In Manufacturing: A Research Landscape
TL;DR: An overview of revenue management systems and an extensive survey of published research along a landscape delineated by three fundamental dimensions of capacity management, pricing, and market segmentation can be found in this paper.
Journal ArticleDOI
Dynamic pricing with time-dependent elasticities
TL;DR: In this article, a general class of deterministic dynamic pricing problems for perishable and durable goods is solved for a continuous time model with several time-dependent parameters, for example, discount rate, marginal unit costs and price elasticity.
References
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Posted Content
Auctions and Bidding
R. Preston McAfee,John McMillan +1 more
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.
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Noncooperative collusion under imperfect price information
Edward J. Green,Robert H. Porter +1 more
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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