Interactive pricing, the subset of dynamic pricing where buyers and sellers enter a computer mediated price-negotiation process, has stimulated academic interest ever since the introduction of Internet-related B2C and B2B applications. However, this has not yet led to the widespread use of standardized interactive pricing mechanisms within industrial applications. A recent study suggests that a...

Customer behavior modeling has gained increasing attention in the context of dynamic pricing. As an important behavior phenomenon, consumer inertia refers to consumers’ inherent tendency of purchase procrastination and may induce consumers to wait even when immediate purchase is optimal from an objective perspective. This paper studies a dynamic pricing problem for a monopolist firm selling per...

Mobile agents are programs that can migrate from machine to machine in a heterogeneous, partially disconnected network. As mobile agents move across a network, they consume resources. We discuss a system for controlling the activities of mobile agents that uses electronic cash, a banking system, and a set of resource managers. We describe protocols for transactions between agents. We present xe...

Sellers of perishable goods increasingly use dynamic pricing strategies as technology makes it easier to change prices and track inventory. This paper tests how accurately theoretical models of dynamic pricing describe sellers’ pricing behavior in secondary markets for event tickets, which are a classic example of a perishable good. It shows that some of the simplest dynamic pricing models desc...

In this paper, we consider the problem of dynamic pricing by a set of competing sellers in an information economy where buyers differentiate products along multiple attributes, and buyer preferences can change temporally. Previous research in this area has either focused on dynamic pricing along a limited number of (e.g. binary) attributes, or, assumes that each seller has access to private inf...

Sellers of perishable goods increasingly use dynamic pricing strategies as technology makes it easier to change prices and track inventory. This paper tests how accurately theoretical models of dynamic pricing describe sellers’ pricing behavior in secondary markets for event tickets, which are a classic example of a perishable good. It shows that some of the simplest dynamic pricing models desc...

The California electric company, i.e., PG&E (Pacific Gas and Electric Co.,), has recently announced its intentions to charge small businesses in the state with dynamic prices for electricity consumption. In this regard, we study a real-time electricity pricing model in the paper and compare it with two static pricing models. We show that real-time pricing outplays static pricing when it comes t...

The literature provides some stylized guidelines for choosing between skimming and penetration pricing for new products in simple competitive scenarios. However, these guidelines do not resolve the practical dynamic pricing problem in the current complex dynamic environments, characterized by numerous brands, each with multiple products and price points, and differentiated on a variety of produ...

We consider the ‘classical’ single product dynamic pricing problem allowing the ‘scale’ of demand intensity to be modulated by an an exogenous ‘market size’ stochastic process. This is a natural model of dynamically changing market conditions. We show that for a broad family of Gaussian market size processes, simple dynamic pricing rules that are essentially agnostic to the specification of thi...

Dynamic pricing schemes in telecommunication networks were traditionally employed to create users’ incentives in such a way that the overall utilization is improved and profits are maximized. However, such schemes create frustration to users, since there is no guarantee that they would get services at the anticipated prices. In this paper, we propose a pricing scheme for priority telephony syst...