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: A transformation technique is introduced that allows for the optimality of a reference-price-dependent base-stock list-price policy, which is characterized by a base- stock level and a target reference price, and shows that in the steady state of the model with the reference price effect, the optimal price is lower while the optimal base-stocks level is higher than their counterparts in the model without the reference prices.
Abstract: We analyze the joint inventory and pricing decisions of a firm when demand depends on not only the current selling price but also a memory-based reference price and customers are loss averse. The p...
90 citations
TL;DR: This paper evaluates the extent to which the retailer can benefit from the implementation of a dynamic pricing policy as opposed to a static one, and shows that the optimal policy is highly dependent on the form of demand incorporated into the model.
89 citations
TL;DR: This paper uses price-based resource allocation strategy and presents both centralized and distributed algorithms to find optimal solutions to these games, showing robust performance for resource allocation and requiring minimal computation time.
Abstract: Distributed resource allocation is a very important and complex problem in emerging horizontal dynamic cloud federation (HDCF) platforms, where different cloud providers (CPs) collaborate dynamically to gain economies of scale and enlargements of their virtual machine (VM) infrastructure capabilities in order to meet consumer requirements HDCF platforms differ from the existing vertical supply chain federation (VSCF) models in terms of establishing federation and dynamic pricing There is a need to develop algorithms that can capture this complexity and easily solve distributed VM resource allocation problem in a HDCF platform In this paper, we propose a cooperative game-theoretic solution that is mutually beneficial to the CPs It is shown that in non-cooperative environment, the optimal aggregated benefit received by the CPs is not guaranteed We study two utility maximizing cooperative resource allocation games in a HDCF environment We use price-based resource allocation strategy and present both centralized and distributed algorithms to find optimal solutions to these games Various simulations were carried out to verify the proposed algorithms The simulation results demonstrate that the algorithms are effective, showing robust performance for resource allocation and requiring minimal computation time
89 citations
Posted Content•
TL;DR: This article developed a theory of dynamic pricing in which firms may offer separate prices to different consumers based on their past purchases, and provided a unified treatment of the two pricing policies, and shed light on observed practices across industries.
Abstract: This article develops a theory of dynamic pricing in which firms may offer separate prices to different consumers based on their past purchases. Brand preferences over two periods are described by a copula admitting various degrees of positive dependence. When commitment to future prices is infeasible, each firm offers lower prices to its rival’s customers. When firms can commit to future prices, consumer loyalty is rewarded if preference dependence is low, but enticing brand switching occurs if preference dependence is high. Our theory provides a unified treatment of the two pricing policies, and sheds light on observed practices across industries.
89 citations
Posted Content•
TL;DR: This work studies the problem of dynamic pricing of web content on a site where revenue is generated from subscription fee as well as advertisements and uses the optimal control theory to solve the problem and obtain the subscription fee and the advertisement level over time.
Abstract: The accumulated evidence indicates that pure revenue models, such as free-access models and pure subscription fee based models, are not sufficient to support the survival of online information sellers. Hence, hybrid models based on a combination of subscription fees and advertising revenues are replacing the pure revenue models. In response to increasing interest in hybrid models, we study the problem of dynamic pricing of web content on a site where revenue is generated from subscription fee as well as advertisements. We use the optimal control theory to solve the problem and obtain the subscription fee and the advertisement level over time. We first consider the case when the subscription fee can vary over time, but the advertisement level stays the same. Then we extend it by optimizing both the subscription fee and the advertisement level dynamically. We also present several analytical and numerical results that provide important managerial insights.
89 citations