Study of Demand Function of Multi - market Segments and Multiple Prices ( MSMP ) in Pricing
نویسندگان
چکیده
A good model of the relationship between the market demand and prices plays a very important role in economic decision-making. Linear demand functions have been widely used in Economics. They work well when there is a single market segment and only a single price is considered (SSSP). However, difficulties have been encountered when we attempted to design a model for multi-market segments and multiple prices (MSMP). Such a model is needed to set different prices for closely-related products. In this paper, we formulate the demand function of MSMP using a Linear Complementarity Problem (LCP). We will incorporate our model of MSMP demand function into pricing models. This leads to a complementarity constrained optimization problem. It will be shown that a complementarity constrained pricing model can be converted to a linearly constrained one in some instances.
منابع مشابه
Joint optimization of pricing and capacity allocation for two competitive airlines under demand uncertainty
Nowadays, airline industries should overcome different barriers regarding the fierce competition and changing consumer behavior. Thus, they attempt to focus on joint decision making which enables them to set pricing and capacity allocation to maximize their profits. In this research, we develop a model to optimize pricing and capacity allocation in a duopoly of single-flight leg for two competi...
متن کاملOptimal Operation of Integrated Energy Systems Considering Demand Response Program
This study presents an optimal framework for the operation of integrated energy systems using demand response programs. The main goal of integrated energy systems is to optimally supply various demands using different energy carriers such as electricity, heating, and cooling. Considering the power market price, this work investigates the effects of multiple energy storage devices and demand res...
متن کاملAgent-Based Modeling of Day-Ahead Real Time Pricing in a Pool-Based Electricity Market
In this paper, an agent-based structure of the electricity retail market is presented based on which day-ahead (DA) energy procurement for customers is modeled. Here, we focus on operation of only one Retail Energy Provider (REP) agent who purchases energy from DA pool-based wholesale market and offers DA real time tariffs to a group of its customers. As a model of customer response to the offe...
متن کاملThreshold F-policy and N-policy for multi-component machining system with warm standbys
The integration of marketing and demand with logistics and inventories (supply side of companies) may cause multiple improvements; it can revolutionize the management of the revenue of rental companies, hotels, and airlines. In this paper, we develop a multi-objective pricing-inventory model for a retailer. Maximizing the retailer's profit and the service level are the objectives, and shorta...
متن کاملA multiple objective approach for joint ordering and pricing planning problem with stochastic lead times
The integration of marketing and demand with logistics and inventories (supply side of companies) may cause multiple improvements; it can revolutionize the management of the revenue of rental companies, hotels, and airlines. In this paper, we develop a multi-objective pricing-inventory model for a retailer. Maximizing the retailer's profit and the service level are the objectives, and shorta...
متن کامل