Pricing with bargain hunting consumers

e-Commerce Bargain-Hunting with an UnBun Model

First-generation comparison-shopping software tools in general have limitations in dealing with bundled products. A new model for e-commerce comparison-shopping, based on a logical unBundling of sellers' offerings, is introduced. The model captures dominance relationship between offerings and consumer requirements and may serve as a foundation for a variety of shopping decision support software...

On Stackelberg Pricing with Computationally Bounded Consumers

In a Stackelberg pricing game a leader aims to set prices on a subset of a given collection of items, such as to maximize her revenue from a follower purchasing a feasible subset of the items. We focus on the case of computationally bounded followers who cannot optimize exactly over the range of all feasible subsets, but apply some publicly known algorithm to determine the set of items to purch...

Intertemporal pricing with boundedly rational consumers∗

Flexible pricing plans are commonly observed in service industries. In this paper, we argue that the presence of flexible pricing plans can be attributed to consumers being boundedly rational – these consumers do not always select the best available option; rather, they select better options more often. In our model, the seller faces consumers who are heterogeneous in their degrees of intertemp...

Contingent Preannounced Pricing Policies with Strategic Consumers

Dynamic Pricing with Loss-Averse Consumers and Peak-End Anchoring

A Working Paper is the author's intellectual property. It is intended as a means to promote research to interested readers. Its content should not be copied or hosted on any server without written permission from [email protected] Click here to access the INSEAD Working Paper collection We study the dynamic pricing implications of a new, behaviorally motivated reference price mechanism...