We develop the first integrated analytical framework to study contract and pricing strategies in the pharmaceutical industry. We demonstrate how this framework can be used to analyze optimal contract and pricing decisions for insurers and manufacturers, including recent pricing practices such as manufacturer’s coupons and risk-sharing contracts. We discuss the implications of these decisions fo...

We consider the dynamic pricing problem of a monopolist firm in a market with repeated interactions, where demand is sensitive to the firm’s pricing history. Consumers have memory and are prone to human decision making biases and cognitive limitations. As the firm manipulates prices, consumers form a reference price that adjusts as an anchoring standard based on price perceptions. Purchase deci...

The objective of this research is to identify the optimal pricing strategy for paid placements on search engines’ “search-results” listings. To accomplish this we develop a mathematical model incorporating a constellation of parameters that describe buyers’ online search intensity, competition among online sellers, and co-opetition between the online sellers and search engine. This model allows...

Litigants are generally charged for using court services. The charges involved are usually set to achieve a combination of efficiency, equity and funding goals. This paper presents a simple model, based on regulated monopoly pricing, to address the question of how these charges should be set. We find that fixed fees generally form part of the optimal charging package, despite concerns about the...

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....

W model the multifaceted impact of pricing decisions in business-to-business (B2B) relationships that are governed by trust. We show how a seller can develop optimal intertemporal targeted pricing strategies to maximize profits over time while taking into consideration the impact of pricing decisions on short-term profit margin, reference price formation, and long-term relationships. Our modeli...

We develop an analytical framework to investigate the competitive implications of dynamic pricing technologies (DPT), which enable precise inferring of consumers’ valuations for firms’ products and personalized pricing. These technologies enable first-degree price discrimination: firms charge different prices to different consumers, based on their willingness to pay. We first show that, even th...

vendor selection decisions are complicated by the fact that various conflicting multi-objective factors must be considered in the decision making process. the problem of vendor selection becomes still more compli-cated with the inclusion of incremental discount pricing schedule. such hard combinatorial problems when solved using meta heuristics produce near optimal solutions. this paper propose...

Online information servers that provide access to diverse databases where users can search for, browse through, and download the information they need have been rapidly increasing in number in the past few years. Online vendors have traditionally charged users for information on the based on the length of the time they were connected to the databases. With hardware and software advances, many o...