Responsive Pricing

Resource Flexibility with Responsive Pricing

This article studies two types of flexibility used by firms to better respond to uncertain market conditions: resource flexibility and responsive pricing. We consider a situation in which a single flexible resource can be used to satisfy two distinct demand classes. While the resource capacity must be decided based on uncertain demand functions, the resource allocation as well as the pricing de...

Does responsive pricing smooth demand shocks ?

Using data from a unique pricing experiment, we test Vickrey’s conjecture that responsive pricing can be used to smooth demand shocks. Our evidence shows that increasing the responsiveness of price to demand conditions reduces the magnitude of deviations in capacity utilization rates from a pre-determined target level. We discuss implications for the use of demand-side incentives to deal with c...

Pricing Network Services - a Literature Review

In this report we review a number of pricing concepts: at pricing, priority pricing, ParisMetro pricing, smart-market pricing, responsive pricing, expected capacity pricing, edge pricing and e ective bandwidth pricing. We provide a description of each method and the underlying assumptions. We outline advantages and disadvantages as seen by their authors. We hope that this collection provides th...

EUI Working Papers ECO 2008/01 Does Responsive Pricing Smooth Demand Shocks?

Using data from a unique pricing experiment, we investigate Vickrey’s conjecture that responsive pricing can be used to smooth both predictable and unpredictable demand shocks. Our evidence shows that increasing the responsiveness of price to demand conditions reduces the magnitude of deviations in capacity utilization rates from a pre-determined target level. A 10 percent increase in price var...

Responsive pricing under supply uncertainty