scispace - formally typeset
Search or ask a question
Topic

Dynamic pricing

About: Dynamic pricing is a research topic. Over the lifetime, 4144 publications have been published within this topic receiving 91390 citations. The topic is also known as: surge pricing & demand pricing.


Papers
More filters
Journal ArticleDOI
TL;DR: In this paper, the authors consider daily online best available rates for 357 hotels in Milan and Rome, up to an advance booking of 29 days, and analyse price trajectories, finding that dynamic pricing strategies with no established trend towards the arrival date are prevalent, with a predominance of decreasing trajectories for lower scale hotels during fairs.

50 citations

Journal ArticleDOI
TL;DR: In this paper, a dynamic pricing problem for a monopolist firm selling perishable goods to consumers who may be influenced by inertia is studied, and it is shown that consumer inertia produces negative effects on firms' expected revenues and optimal prices which are monotonically decreasing in both inertia depth and breadth.
Abstract: Customer behavior modeling has gained increasing attention in the context of dynamic pricing. As an important behavior phenomenon, consumer inertia refers to consumers' inherent tendency of purchase procrastination and may induce consumers to wait even when immediate purchase is optimal from an objective perspective. This paper studies a dynamic pricing problem for a monopolist firm selling perishable goods to consumers who may be influenced by inertia. We formulate this problem using the finite-horizon dynamic programming approach and derive the optimal dynamic pricing policy. We demonstrate that consumer inertia produces negative effects on firms' expected revenues and optimal prices, which are monotonically decreasing in both inertia depth and breadth. Through numerical illustrations, we further show that the marginal effects of inertia depth on optimal prices and expected revenues are decreasing, whereas the marginal effects of inertia breadth are increasing. Finally we propose some suggestions for firms to influence the level of consumer inertia.

50 citations

Journal ArticleDOI
TL;DR: Simulation results have shown that proposed dynamic pricing scheme is suitable in term of profit and comfort for flexible and inflexible loads as compared to fixed pricing scheme in both cases.

50 citations

Journal ArticleDOI
TL;DR: A dynamic pricing strategy is proposed to minimize the average cost of the MEC system under the constraints on quality of service by adjusting the price constantly based on the current system state by solving the cost minimization problem efficiently.
Abstract: The idle computing resources of parked vehicles could be utilized to improve performance by assisting task executions in mobile edge computing (MEC) systems. As a result, the owner of a vehicle could be compensated, resulting in a win-win situation. A dynamic pricing strategy is proposed to minimize the average cost of the MEC system under the constraints on quality of service by adjusting the price constantly based on the current system state. To do so, a cost minimization problem is solved to obtain the optimal dynamic pricing strategy efficiently. Finally, the optimization results are validated with extensive simulations.

50 citations

Journal ArticleDOI
TL;DR: This article proposes spatial control, in which the user is encouraged to move to a less congested location, and temporal control,In which incentives ensure that the user reduces (or postpones) his current data demand in case the network is congested.
Abstract: The demand for wireless access data rates is growing exponentially at a pace where supply cannot keep up with. Wireless resources (spectrum, time, space) are limited and shared, and transmission rates cannot be improved anymore solely with physical layer innovations. On the consumer side, flat rate type tariffs have established unnecessarily high expectations and often wasteful consumption. Dealing with congestion is unavoidable as a consequence of operating in a regime where demand is close to, equal to, or exceeding the supply. We can no longer assume that the current over-provisioning approach continues to be feasible. Complementary to the engineering for the growth of the supply side, this article focuses on the engineering for the control of the demand side. An approach referred to as the “user-in-the-loop” (UIL) is therefore motivated here. This article proposes spatial control, in which the user is encouraged to move to a less congested location, and temporal control, in which incentives (e.g., dynamic pricing) ensure that the user reduces (or postpones) his current data demand in case the network is congested. Results from a survey, which measures how willing a user is to respond to such control, are also presented. As users are modeled by a system-theoretic box in a closed-loop (control) system, they feature an input handle for incentives and an output handle for the reaction. Incentives can be progressive tariffs, reward programs, higher access rates, or even environmental (green) indicators. Incentives are tailored to the major Quality-of-Service (QoS) classes and help to shape the demand at the application layer-7 as well as at the user (“layer-8”). UIL can safely be applied in addition to other technologies, which are mainly for increasing the supplied capacity.

50 citations


Network Information
Related Topics (5)
Optimization problem
96.4K papers, 2.1M citations
82% related
Supply chain
84.1K papers, 1.7M citations
80% related
Energy consumption
101.9K papers, 1.6M citations
79% related
Empirical research
51.3K papers, 1.9M citations
77% related
Robustness (computer science)
94.7K papers, 1.6M citations
77% related
Performance
Metrics
No. of papers in the topic in previous years
YearPapers
2023140
2022262
2021307
2020324
2019346
2018314