State-Dependent Pricing Under Infrequent Information: A Unified Framework
نویسندگان
چکیده
منابع مشابه
State-Dependent Pricing under Infrequent Information: A Unified Framework
We characterize optimal state-dependent pricing rules under various forms of infrequent information. In all models, infrequent price changes arise from the existence of a lump-sum “menu cost.” We entertain various alternatives for the source and nature of infrequent information. In two benchmark cases with continuously available information, optimal pricing rules are purely state-dependent. In ...
متن کاملInformation-Constrained State-Dependent Pricing∗
I present a generalization of the standard (full-information) model of statedependent pricing in which decisions about when to review a firm’s existing price must be made on the basis of imprecise awareness of current market conditions. The imperfect information is endogenized using a variant of the theory of “rational inattention” proposed by Sims (1998, 2003, 2006). This results in a one-para...
متن کاملTime- and State-Dependent Pricing: A Unied Framework
We develop a tractable uni ed framework for solving optimal timeand state-dependent price-setting problems. We illustrate our approach by solving a price-setting problem where adjustments are costly, and there are two types of information. One type of information is freely available and ows continuously, while the other type is costly and requires the payment of a lump-sum cost to be obtained....
متن کاملA Framework for Pricing Schemes for Networks under Complete Information
The revenue maximization problem of service provider is considered and different pricing schemes to solve the above problem are implemented. The service provider can choose an apt pricing scheme subjected to limited resources, if he knows the utility function and identity of the user. The complete price differentiation can achieve a large revenue gain but has high implementation complexity. The...
متن کاملA Unified Pricing of Variable Annuity Guarantees under the Optimal Stochastic Control Framework
In this paper, we review pricing of the variable annuity living and death guarantees offered to retail investors in many countries. Investors purchase these products to take advantage of market growth and protect savings. We present pricing of these products via an optimal stochastic control framework and review the existing numerical methods. We also discuss pricing under the complete/incomple...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2010
ISSN: 1556-5068
DOI: 10.2139/ssrn.1629242