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.
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TL;DR: This paper describes recent developments on tackling the entire control problem by reviewing the key literature on choice-based revenue management, specifically focusing on methodological publications of availability control over the years 2004–2017.
101 citations
TL;DR: A novel mixed-integer linear programming is developed to consider dynamic pricing approach for used products, forward/reverse logistics network configuration and inventory decisions, concurrently, and Computational results indicate that the effect of a dynamic Pricing for Used products versus a static pricing one, and the linearization of pricing concept for this model have the acceptable solution.
101 citations
TL;DR: This paper analyzes the pricing problem with a limited number of price changes in a dynamic, deterministic environment in which demand depends on the current price and time, and there is a capacity/inventory constraint that may be set optimally ahead of the selling season.
100 citations
TL;DR: In this article, a retailer following a competition-based dynamic-pricing strategy tracks competitors' price changes and then must answer the following questions: (i) Should we respond? (ii) If so, to whom? (iii) How much of a response? (iv) And on which products?
Abstract: A retailer following a competition-based dynamic-pricing strategy tracks competitors’ price changes and then must answer the following questions: (i) Should we respond? (ii) If so, to whom? (iii) How much of a response? (iv) And on which products? The answers require unbiased measures of price elasticity as well as accurate estimates of competitor significance and the extent to which consumers compare prices across retailers. There are two key challenges to quantify these factors empirically: first, the endogeneity associated with almost any type of observational data, where prices are correlated with demand shocks observable to pricing managers but not to researchers, and second, the absence of competitor sales information, which prevents efficient estimation of a full consumer-choice model. We address the first issue by conducting a field experiment with randomized prices. We resolve the second issue by exploiting the retailer’s own and competitors’ stockouts as a source of variation to the consumer cho...
100 citations
TL;DR: This paper is believed to be the first paper that uses robust optimization for dynamic pricing under competition in a multi-period oligopolistic market for a single perishable product with fixed inventory using ideas from robust optimization and variational inequalities.
Abstract: We study a multi-period oligopolistic market for a single perishable product with fixed inventory. Our goal is to address the competitive aspect of the problem together with demand uncertainty using ideas from robust optimization and variational inequalities. The demand function for each seller has some associated uncertainty and we assume that the sellers would like to adopt a policy that is robust to adverse uncertain circumstances. We believe this is the first paper that uses robust optimization for dynamic pricing under competition. In particular, starting with a given fixed inventory, each seller competes over a multi-period time horizon in the market by setting prices and protection levels for each period at the beginning of the time horizon. Any unsold inventory at the end of the horizon is worthless. The sellers do not have the option of periodically reviewing and replenishing their inventory. We study non-cooperative Nash equilibrium policies for sellers under such a model. This kind of a setup can be used to model pricing of air fares, hotel reservations, bandwidth in communication networks, etc. In this paper we demonstrate our results through some numerical examples.
100 citations