Dynamic Pricing Strategies In The Presence Of Demand Shifts PDF Download
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| Author | : Omar Besbes |
| Publisher | : |
| Total Pages | : 33 |
| Release | : 2016 |
| Genre | : |
| ISBN | : |
Download Dynamic Pricing Strategies in the Presence of Demand Shifts Book in PDF, ePub and Kindle
Many factors introduce the prospect of changes in the demand environment that a firm faces, with the specifics of such changes not necessarily known in advance. If and when realized, such changes affect the delicate balance between demand and supply and thus current prices should account for these future possibilities. We study the dynamic pricing problem of a retailer facing the prospect of a change in the demand function during a finite selling season with no inventory replenishment opportunity. In particular, the time of the change and the postchange demand function are unknown upfront, and we focus on the fundamental trade-off between collecting revenues from current demand and doing so for postchange demand, with the capacity constraint introducing the main tension. We develop a formulation that allows for isolating the role of dynamic pricing in balancing inventory consumption throughout the horizon. We establish that, in many settings, optimal pricing policies follow a monotone path up to the change in demand. We show how one may compare upfront the attractiveness of pre- and postchange demand conditions and how such a comparison depends on the problem primitives. We further analyze the impact of the model inputs on the optimal policy and its structure, ranging from the impact of model parameter changes to the impact of different representations of uncertainty about future demand.
| Author | : Yinhan Meng |
| Publisher | : |
| Total Pages | : 96 |
| Release | : 2011 |
| Genre | : |
| ISBN | : |
Download Dynamic Pricing Under Demand Uncertainty in the Presence of Strategic Consumers Book in PDF, ePub and Kindle
We study the effect of strategic consumer behavior on pricing, inventory decisions, and inventory release policies of a monopoly retailer selling a single product over two periods facing uncertain demand. We consider the following three-stage two-period dynamic pricing game. In the first stage the retailer sets his inventory level and inventory release policy; in the second stage the retailer faces uncertain demand that consists of both myopic and strategic consumers. The former type of consumers purchase the good if their valuations exceed the posted price, while the latter type of consumers consider future realizations of prices, and hence their future surplus, before deciding when to purchase the good; in the third stage, the retailer releases its remaining inventory according to the release policy chosen in the first stage. Game theory is employed to model strategic decisions in this setting. Each of the strategies available to the players in this setting (the consumers and the retailer) are solved backward to yield the subgame perfect Nash equilibrium, which allows us to derive the equilibrium pricing policies. This work provides three primary contributions to the fields of dynamic pricing and revenue management. First, if, in the third stage, inventory is released to clear the market, then the presence of strategic consumers may be beneficial for the retailer. Second, we find the optimal inventory release strategy when retailers have capacity limitation. Lastly, we numerically demonstrate the retailer's optimal decisions of both inventory level and the inventory release strategy. We find that market clearance mechanism and intermediate supply strategy may emerge as the retailers optimal choice.
| Author | : Koray Cosguner |
| Publisher | : |
| Total Pages | : 47 |
| Release | : 2017 |
| Genre | : |
| ISBN | : |
Download Dynamic Pricing in a Distribution Channel in the Presence of Switching Costs Book in PDF, ePub and Kindle
We advance the literature on dynamic oligopoly pricing models in the presence of switching costs by additionally modeling the strategic pricing role of the retailer within the distribution channel. In doing this, we study the relative dynamic pricing implications of how current retail and wholesale prices for a brand must optimally take into account past and future demand, respectively, for the brand. Using scanner data from the cola market, we find that while the retailer exploits the benefit of inertial demand by appropriately increasing the retail profit margin, the cost of investing is borne entirely by the manufacturers. We use simulation studies to show how the retailer will lose its ability to leverage the benefits of inertial demand as consumers become more price sensitive. We also show that when inertia of the more price-sensitive customer segment increases, the aggregate welfare of consumers, the retailer, and manufacturers may increase.
| Author | : Vithala R. Rao |
| Publisher | : Edward Elgar Publishing |
| Total Pages | : 617 |
| Release | : 2009 |
| Genre | : Business & Economics |
| ISBN | : 1848447442 |
Download Handbook of Pricing Research in Marketing Book in PDF, ePub and Kindle
Pricing is an essential aspect of the marketing mix for brands and products. Further, pricing research in marketing is interdisciplinary, utilizing economic and psychological concepts with special emphasis on measurement and estimation. This unique Handbook provides current knowledge of pricing in a single, authoritative volume and brings together new cutting-edge research by established marketing scholars on a range of topics in the area. The environment in which pricing decisions and transactions are implemented has changed dramatically, mainly due to the advent of the Internet and the practices of advance selling and yield management. Over the years, marketing scholars have incorporated developments in game theory and microeconomics, behavioral decision theory, psychological and social dimensions and newer market mechanisms of auctions in their contributions to pricing research. These chapters, specifically written for this Handbook, cover these various developments and concepts as applied to tackling pricing problems. Academics and doctoral students in marketing and applied economics, as well as pricing-focused business practitioners and consultants, will appreciate the state-of-the-art research herein.
| Author | : Erich Schneider |
| Publisher | : |
| Total Pages | : 372 |
| Release | : 1952 |
| Genre | : Economics, Mathematical |
| ISBN | : |
Download Pricing and Equilibrium Book in PDF, ePub and Kindle
| Author | : Kalyan T. Talluri |
| Publisher | : Springer Science & Business Media |
| Total Pages | : 731 |
| Release | : 2006-02-21 |
| Genre | : Business & Economics |
| ISBN | : 0387273913 |
Download The Theory and Practice of Revenue Management Book in PDF, ePub and Kindle
Revenue management (RM) has emerged as one of the most important new business practices in recent times. This book is the first comprehensive reference book to be published in the field of RM. It unifies the field, drawing from industry sources as well as relevant research from disparate disciplines, as well as documenting industry practices and implementation details. Successful hardcover version published in April 2004.
| Author | : Fouad Sabry |
| Publisher | : One Billion Knowledgeable |
| Total Pages | : 351 |
| Release | : 2024-02-04 |
| Genre | : Business & Economics |
| ISBN | : |
Download Pricing Strategies Book in PDF, ePub and Kindle
What is Pricing Strategies When it comes to selling a product or service, a company has a number of different pricing techniques at its disposal. The top executives of a firm must first assess the company's price position, pricing segment, pricing capabilities, and competition pricing reaction strategy before they can choose which pricing strategy will be the most beneficial for the company. Pricing strategies and tactics varies not only from one company to the next, but also from one nation to another, from one culture to another, from one industry to another, and over the course of time, as a result of the maturation of industries and marketplaces as well as wider economic conditions. How you will benefit (I) Insights, and validations about the following topics: Chapter 1: Pricing strategies Chapter 2: Monopoly Chapter 3: Price discrimination Chapter 4: Product bundling Chapter 5: Pricing Chapter 6: Product differentiation Chapter 7: Porter's five forces analysis Chapter 8: Price skimming Chapter 9: Cost-plus pricing Chapter 10: Porter's generic strategies Chapter 11: Barriers to entry Chapter 12: Yield management Chapter 13: Non-price competition Chapter 14: Rebate (marketing) Chapter 15: Dynamic pricing Chapter 16: Value-based pricing Chapter 17: Marketing channel Chapter 18: Premium pricing Chapter 19: Pay what you want Chapter 20: Customer cost Chapter 21: Types of e-commerce (II) Answering the public top questions about pricing strategies. (III) Real world examples for the usage of pricing strategies in many fields. Who this book is for Professionals, undergraduate and graduate students, enthusiasts, hobbyists, and those who want to go beyond basic knowledge or information for any kind of Pricing Strategies.
| Author | : Özalp Özer |
| Publisher | : OUP Oxford |
| Total Pages | : 976 |
| Release | : 2012-06-07 |
| Genre | : Business & Economics |
| ISBN | : 0191634263 |
Download The Oxford Handbook of Pricing Management Book in PDF, ePub and Kindle
The Oxford Handbook of Pricing Management is a comprehensive guide to the theory and practice of pricing across industries, environments, and methodologies. The Handbook illustrates the wide variety of pricing approaches that are used in different industries. It also covers the diverse range of methodologies that are needed to support pricing decisions across these different industries. It includes more than 30 chapters written by pricing leaders from industry, consulting, and academia. It explains how pricing is actually performed in a range of industries, from airlines and internet advertising to electric power and health care. The volume covers the fundamental principles of pricing, such as price theory in economics, models of consumer demand, game theory, and behavioural issues in pricing, as well as specific pricing tactics such as customized pricing, nonlinear pricing, dynamic pricing, sales promotions, markdown management, revenue management, and auction pricing. In addition, there are articles on the key issues involved in structuring and managing a pricing organization, setting a global pricing strategy, and pricing in business-to-business settings.
| Author | : Robert J. Doan |
| Publisher | : Simon and Schuster |
| Total Pages | : 392 |
| Release | : 1996 |
| Genre | : Business & Economics |
| ISBN | : 068483443X |
Download Power Pricing Book in PDF, ePub and Kindle
In one compact volume, here are the innovative tactics business leaders need to attain maximum financial performance for their companies. Whether they're selling beer or land, this book is one book managers can't afford to ignore
| Author | : Bruce A. Blonigen |
| Publisher | : |
| Total Pages | : 68 |
| Release | : 2001 |
| Genre | : Antidumping duties |
| ISBN | : |
Download Dynamic Pricing in the Presence of Antidumping Policy Book in PDF, ePub and Kindle
Antidumping (AD) duties are calculated as the difference between the foreign firm's product price in the export market and some definition of 'normal' or 'fair' value, often the foreign firm's product price in its own market. Additionally, AD laws allow for recalculation of these AD duties over time in what are known as administrative reviews. This paper examines for the first time the resulting dynamic pricing problem of a foreign firm that faces such an AD trade protection policy in its export market. When AD duties are certain for any dumping that occurs, we obtain the surprising result that dumping and AD duties should increase over time toward a stationary equilibrium value. Adding uncertainties prevalent in AD enforcement into our analysis changes these conclusions substantially and leads to more realistic testable implications. Firms with ex ante expectations that the probability of AD enforcement is low, or with expectations that the probability of a termination/VER (instead of AD duties) is high, will decrease their dumping and AD duties over time in the administrative review process once they face AD duties. Using detailed data from U.S. AD investigations filed from 1980-1995, we find evidence consistent with these hypotheses stemming from our analysis with uncertain AD enforcement and provide empirical evidence consistent with James Anderson's domino dumping hypothesis.
