Dynamic Pricing and Inventory Control of Substitute Products
Manufacturing & Service Operations Management
Consumer Returns Policies and Supply Chain Performance
Manufacturing & Service Operations Management
Inventory, Discounts, and the Timing Effect
Manufacturing & Service Operations Management
RFID-enabled item-level retail pricing
Decision Support Systems
Technical Note---Personalized Dynamic Pricing of Limited Inventories
Operations Research
Optimal Pricing with Speculators and Strategic Consumers
Management Science
Buy Now and Match Later: Impact of Posterior Price Matching on Profit with Strategic Consumers
Manufacturing & Service Operations Management
Intertemporal Pricing and Consumer Stockpiling
Operations Research
Selling with Binding Reservations in the Presence of Strategic Consumers
Management Science
Strategic Capacity Rationing when Customers Learn
Manufacturing & Service Operations Management
Dynamic Pricing of Limited Inventories When Customers Negotiate
Operations Research
A design model for knowledge-based pricing services in the retail industry
International Journal of Web Engineering and Technology
A design model for knowledge-based pricing services in the retail industry
International Journal of Web Engineering and Technology
Dynamic Pricing with Loss-Averse Consumers and Peak-End Anchoring
Operations Research
Demand Dynamics in the Seasonal Goods Industry: An Empirical Analysis
Marketing Science
What Is Interesting in Operations Management?
Manufacturing & Service Operations Management
Supply Chain Dynamics and Channel Efficiency in Durable Product Pricing and Distribution
Manufacturing & Service Operations Management
Advance Selling When Consumers Regret
Management Science
A note on demand functions with uncertainty
Operations Research Letters
Using "last-minute" sales for vertical differentiation on the Internet
Decision Support Systems
Markdown Pricing with Unknown Fraction of Strategic Customers
Manufacturing & Service Operations Management
The Value of Product Variety When Selling to Strategic Consumers
Manufacturing & Service Operations Management
Dynamic pricing of durable products with heterogeneous customers and demand interactions over time
Computers and Industrial Engineering
A randomized pricing decision support system in electronic commerce
Decision Support Systems
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This paper develops a model of dynamic pricing with endogenous intertemporal demand. In the model, there is a monopolist who sells a finite inventory over a finite time horizon. The seller adjusts prices dynamically to maximize revenue. Customers arrive continually over the duration of the selling season. At each point in time, customers may purchase the product at current prices, remain in the market at a cost to purchase later, or exit, and they wish to maximize individual utility. The customer population is heterogeneous along two dimensions: they may have different valuations for the product and different degrees of patience (waiting costs). We demonstrate that heterogeneity in both valuation and patience is important because they jointly determine the structure of optimal pricing policies. In particular, when high-value customers are proportionately less patient, markdown pricing policies are effective because the high-value customers would buy early at high prices while the low-value customers are willing to wait (i.e., they are not lost). On the other hand, when the high-value customers are more patient than the low-value customers, prices should increase over time to discourage inefficient waiting. Contrary to intuition, we find that strategic waiting by customers may sometimes benefit the seller: when low-value customers wait, they compete for availability with high-value customers and thus increase their willingness to pay. Our results also shed light on how the composition of the customer population affects optimal revenue, consumer surplus, and social welfare. Finally, we consider the long-run problem of selecting the optimal initial stocking quantity.