Optimal monopolist pricing under demand uncertainty in dynamic markets
Management Science
Differential games in economics and management science
Differential games in economics and management science
Pricing and the News Vendor Problem: a Review with Extensions
Operations Research
Inventory Competition Under Dynamic Consumer Choice
Operations Research
Centralized and Competitive Inventory Models with Demand Substitution
Operations Research
Commissioned Paper: An Overview of Pricing Models for Revenue Management
Manufacturing & Service Operations Management
The Dynamic Pricing Problem from a Newsvendor's Perspective
Manufacturing & Service Operations Management
Revenue Management Games: Horizontal and Vertical Competition
Management Science
Strategic Investments, Trading, and Pricing Under Forecast Updating
Management Science
Revenue Management of a Make-to-Stock Queue
Operations Research
Optimal Pricing of Seasonal Products in the Presence of Forward-Looking Consumers
Manufacturing & Service Operations Management
Dynamic Pricing and Inventory Control of Substitute Products
Manufacturing & Service Operations Management
Dynamic selling of quality-graded products under demand uncertainties
Computers and Industrial Engineering
SIAM Journal on Control and Optimization
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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.