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.

Integrated dynamic pricing and procurement support for e-commerce advertising channels

Abstract: The present invention provides a virtual system that assists in the procurement of advertising on an Internet vendor site for the sale of products or services. The system links to a user's financial package to get data on the products or services and allows the user to set financial parameters based on the desired financial goals related to the product and advertising. Performance data regarding advertising is accessed and financial rules generated which are applied to generate a target price for advertising or one or more products. The system can acquire advertising automatically or assist in the submission of bids in an auction of advertising. In a preferred embodiment, keywords are purchased on a search engine in an auction.

Dynamic pricing for hotel revenue management using price multipliers

Abstract: In this article we propose a new dynamic pricing approach for the hotel revenue management problem. The proposed approach is based on having ‘price multipliers’ that vary around ‘1’ and provide a varying discount/premium over some seasonal reference price. The price multipliers are a function of certain influencing variables (for example, hotel occupancy, time until arrival). We apply an optimization algorithm for determining the parameters of these multipliers, the goal being to maximize the revenue, taking into account current demand, and the demand-price sensitivity of the hotel's guest. The optimization algorithm makes use of a Monte Carlo simulator that simulates all the hotel's processes, such as reservations arrivals, cancellations, duration of stay, no shows, group reservations, seasonality and trend, as faithfully as possible. We have tested the proposed approach by successfully applying it to the revenue management problem of Plaza Hotel, Alexandria, Egypt, as a case study.

A Monopolistic and Oligopolistic Stochastic Flow Revenue Management Model

Abstract: This paper studies a one-shot inventory replenishment problem with dynamic pricing. The customer arrival rate is assumed to follow a geometric Brownian motion. Homogeneous customers have an isoelastic demand function and do not behave strategically. We find a closed-form optimal pricing policy, which utilizes current demand information. Under this pricing policy the inventory trajectory is deterministic, and a retailer sells all inventory. We show that dynamic pricing coordinated with the inventory decision achieves significantly higher profits than does static pricing. Furthermore, under oligopolistic competition we establish a weak perfect Bayesian equilibrium for the price and inventory replenishment game. We find the pricing equilibrium to be cooperative even in a noncooperative environment, but that inventory competition results in overstock and damages profits. Finally, we examine the trade-off between dynamic pricing and price precommitment and find that flexible pricing is still beneficial, provided competition is not too intense.

Dynamic Pricing, Scheduling, and Energy Management for Profit Maximization in PHEV Charging Stations

Abstract: Recently, as plug-in hybrid electric vehicles (PHEVs) take center stage for the eco-friendly and cost-effective transportation, commercial PHEV charging stations will be widely prevalent in the future. However, previous studies in the fields of the management of PHEV charging stations have not synthetically taken practical charging systems into account. In this paper, we study the profit-optimal management of a PHEV charging station under the realistic environment addressing not only various types of vehicles but waiting time guarantee for PHEV customers as well. This paper is first to jointly take into account pricing for charging services, scheduling of reserved vehicles to PHEV chargers, dropping of reserved vehicles, and management of the energy storage in a unified framework that contains key features of a practical PHEV charging station. Based on this framework, we develop an algorithm to find the parameters required for charging management by invoking the “Lyapunov drift-plus-penalty” technique. Through theoretical analysis, we prove that the proposed algorithm achieves close-to-optimal performance under particular conditions by exploiting opportunism of time-varying arrival of charging vehicles, price of electricity, and renewable energy generation, but it requires no probabilistic future information. Finally, we find several significant messages via trace-driven simulation of the proposed algorithm.

Dynamic pricing in the virtual marketplace

Abstract: From its simple beginnings in the town square, the "marketplace" has grown to encompass the entire global business environment. The vast and intricately woven infrastructure necessary for this level of commerce involves issues of money, credit, insurance, legal infrastructure, corporate and individual identities, and fraud detection and deterrence. As market activities move online, we have an opportunity to re-examine the processes and conventions that governed pre-Internet commerce, and to restructure those that need it for the virtual marketplace. One concept being challenged by new technologies is fixed pricing, which became prevalent in western society during the industrial revolution when mass production and widespread delivery of goods made price negotiation impractical. A Wyoming frontiersman could not negotiate with Sears, Roebuck and Co. about the mail-order catalog price of a pair of boots in the late 1890s. The Internet now has the potential to reverse that trend.