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.

Dynamic Pricing and Risk Analytics Under Competition and Stochastic Reference Price Effects

Abstract: This paper investigates the pricing strategy of firms in the context of uncertain demand. In particular, there are two factors that affect demand dynamics, the influence of reference prices and the price of the competition. In the monopoly case, pricing policy is affected by reference-price effects and in the duopoly case, both competitive pricing and reference-price effects are present. In each case, the optimal price paths are derived and simulated. The implications of uncertainty are analyzed by comparing the deterministic policy with the stochastic policy. The random variations in price paths are investigated to provide a risk analysis for firms that work in such market conditions. With the advent of the big data era, information about consumers and competitors gives firms a greater control over uncertainty than ever before. Simulations will demonstrate that firms can lower the volatility of their price path if they gather and process this information. Furthermore, the feedback forms of the optimal price path are derived in both the absence and the presence of both competition and reference-price effects. In general, the impact that demand uncertainty has over the firm’s pricing strategy is determined by a combination of the firm’s discount rate, demand uncertainty, and demand-side/cost-side dynamics.

Consideration of the Impacts of a Smart Neighborhood Load on Transformer Aging

Abstract: Smart grid solutions with enabling technologies such as energy management systems (EMSs) and smart meters promote the vision of smart households, which also allows for active demand side in the residential sector. These technologies enable the control of residential consumption, local small-scale generation, and energy storage systems to respond to time-varying prices. However, shifting loads simultaneously to lower price periods is likely to put extra stress on distribution system assets such as distribution transformers. Especially, additional new types of loads/appliances such as electric vehicles (EVs) can introduce even more burden on the operation of these assets, which is an issue that needs special attention. Such extra stress can cause accelerated aging of distribution system assets and significantly affect the reliability of the system. In this paper, the impact of a smart neighborhood load on distribution transformer aging is investigated. The EMS of each household is designed to respond to prices and other signals emitted by the responsive load serving entity within the relevant demand response strategy. An optimization framework based on mixed-integer linear programming is presented in order to define the EMS structure. Then, the equivalent aging of the distribution transformer is examined with a thermal model under different scenarios. The case studies that are presented indicate that the integration of EVs in residential premises may indeed cause accelerated aging of the distribution transformers, while the need to investigate the efficiency of dynamic pricing mechanisms is rendered evident.

Dynamic pricing for content presentations

Abstract: A request for content is received First content is selected for the request The first content is selected from among multiple content items based on information in the request, a characteristic of how the first content is to be presented, and a stored pricing threshold value selected based on the characteristic The characteristic of how the first content is to be presented includes an amount of available space that is occupied by the first content when the first content is presented The selected first content is provided for presentation by a publisher that provides second content

A Framework for Commercial Grids—Economic and Technical Challenges

Abstract: This paper argues that the technology of Grid computing has not yet been adopted in commercial settings due to the lack of viable business models. While in academia Grid technology has already been taken up, the sharing approach among non for-profit organizations is not suitable for enterprises. In this paper, the idea of a Grid market is taken up to overcome this Grid adoption gap. We propose a framework for building up a Grid market and identifies the associated economic and technical challenges. Based on this framework, we identify a catalogue of possible market mechanisms which offer a promising fit to the Grid environment’s characteristics and which may thus help to carry the idea of Grid markets from theory to practice.