A Note on the Relationship Among Capacity, Pricing, and Inventory in a MaketoStock System
نویسندگان
چکیده
We address the simultaneous determination of pricing, production, and capacity investment decisions by a monopolistic firm in a multi-period setting under demand uncertainty. We analyze the optimal decision with particular emphasis on the relationship between price and capacity. We consider models that allow for either bi-directional price changes or models with markdowns only, and in the latter case we prove that capacity and price are strategic substitutes.
منابع مشابه
A Note on the Relationship Between Pricing and Capacity Decisions in Make-to-Stock Systems
We address the simultaneous determination of pricing and capacity investment strategies in a multi-period setting under demand uncertainty. In our model a monopolistic firm makes three decisions: capacity investment (or disinvestment), production (inventory), and price, all of which can be specified dynamically as a function of the state of the system. We analyze the optimal joint strategy and ...
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