Dynamic pricing when consumers are strategic: Analysis of posted and contingent pricing schemes

European Journal of Operational Research

Volumn 204, Issue 3, 2010, Pages 662-671

  Dasu, Sriram ^a   Tong, Chunyang ^b  

^a UNIVERSITY OF SOUTHERN CALIFORNIA   (United States)

^b SHANGHAI UNIVERSITY OF FINANCE AND ECONOMICS   (China)

Author keywords

Customer strategic behavior; Dynamic pricing; Revenue management

Indexed keywords

DYNAMIC PRICING; EXPECTED REVENUE; FINITE TIME HORIZON; MULTI-UNIT AUCTION; NUMERICAL EXAMPLE; OPTIMAL STOCKING; PERISHABLE PRODUCT; PRICE CHANGES; PRICE EVOLUTION; PRICE POLICY; PRICING POLICY; PRICING SCHEME; RESERVATION PRICE; REVENUE MANAGEMENT; STRATEGIC BEHAVIOR; STRATEGIC BUYERS; UPPER BOUND;

ECONOMICS; MANAGEMENT; RESOURCE VALUATION; SALES;

COSTS;

EID: 75149191755     PISSN: 03772217     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.ejor.2009.11.018     Document Type: Article

References (31)

1. Arnold M., and Lippman S.A. The analytics of search with posted prices. Economics Theory 17 (2001) 447-464
2. Aviv Yossi., and Pazgal Amit. Optimal pricing of seasonal products in the presence of forward-looking consumers. Manufacturing and Service Operations Management 10 (2008) 339-359
3. Besanko D., and Winston W.L. Optimal price skimming by a monopoly facing rational consumers. Management Science 36 (1990) 555-567
4. Bitran G., and Caldentey R. An overview of pricing models and revenue management. MSOM 5 (2003) 203-229
5. Bitran G.R., and Mondschein S.V. Periodic pricing of seasonal products in retailing. Management Science 43 (1997) 64-79
6. Coase Ronald. Durability and monopoly. Journal of Law and Economics 15 (1972) 143-149
7. Elmaghraby W., and Keskinocak P. Dynamic pricing in the presence of inventory considerations: Research overview, current practices and future directions. Management Science 49 (2003) 1287-1309
8. Fudenberg Drew., and Tirole Jean. Game Theory (1991), The MIT Press, Cambridge, MA
9. Gallego G., and van Ryzin G. Optimal dynamic pricing of inventories with stochastic demand over finite horizons. Management Science 40 (1994) 999-1020
10. Harris A., and Raviv M. A theory of monopoly pricing schemes with demand uncertainty. American Economics Review 71 (1981) 347-365
11. Krishna Vijay. Auction Theory (2002), Academic Press, USA
12. Lazear E.P. Retail pricing and clearance sales. American Economics Review 76 (1986) 14-32
13. Levy D., Bergen M., Dutta S., and Venable R. The magnitude of menu costs: Direct evidence from large US supermarket chains. Quarterly Journal of Economics 112 (1997) 791-825
14. Liu Q., and van Ryzin G. Strategic capacity rationing to induce early purchases. Management Science 54 6 (2008) 1115-1131
15. Maglaras C., and Meissner J. Dynamic pricing strategy for multi-product revenue management problems. Manufacturing and Service Operations Management (2006) 136-148
16. Mantrala M., and Rao S. A decision-support system that helps retailers decide order quantities and markdowns for fashion goods. Interfaces 31 (2001) 146-165
17. McGill J., and van Ryzin G.J. Revenue management: Research overview and prospects. Transportation Science 33 (1999) 33-256
18. McWilliams G. Minding the store: Analyzing customers, best buy decides not all are wellcome. Wall Street Journal 8 (2004) A1
19. Milgrom P. Putting Auction Theory to Work (2004), Cambridge University Press
20. Milgrom, P., Weber, R., 2000. A theory of auctions and competitive bidding. In: Klemperer, P. (Ed.), The Economic Theory of Auctions.
21. Moorthy S. Product and price competition in a duopoly. Marketing Science 7 (1988) 161-168
22. Netessine S. Dynamic pricing of inventory/capacity with infrequent price changes. European Journal of Operational Research 174 1 (2006) 553-580
23. Savin S., Netessine S., and Xiao W.-Q. Dynamic revenue management through cross-selling in e-commerce retailing. Operations Research 54 5 (2006) 893-913
24. Shen Z.-J., and Xuanming S. Customer behavior modeling in revenue management and auctions: A review and new research opportunities. Production and Operations Management 16 6 (2007) 713-728
25. Stockey N.L. Intertemporal price discrimination. Quaterly Journal of Economics 93 (1979) 355-371
26. Stockey N.L. Rational expectations and durable goods pricing. Bell Journal of Economics 12 (1981) 112-128
27. Su X. Inter-temporal pricing with strategic customer behavior. Management Science 53 5 (2007) 726-741
28. Talluri K., and van Ryzin G. Revenue management under a general discrete choice model of consumer behavior. Management Science 50 (2004) 15-33
29. Talluri K., and van Ryzin G. The Theory and Practice of Revenue Management (2004), Kluwer Academic Publishers.
30. Zbaracki M.J., Ritson M., Levy D., Dutta S., and Bergen M. Managerial and customer costs of price adjustment: Direct evidence from industrial markets. The Review of Economics and Statistics 86 2 (2004) 514-533
31. Zhang D., and Cooper W.L. Revenue management for parallel flights with customer-choice behavior. Operations Research 53 (2005) 415-431