In this work we study pricing as a mechanism to control large networks. Our model is based on revenue maximization in a general loss network with Poisson arrivals and arbitrary holding time distributions. In dynamic pricing schemes, the network provider can charge different prices to the user according to the current utilization level of the network. We show that, when the system becomes large,...

This paper proposes an algorithm for transmission cost allocation (TCA) in a large power system based on nodal pricing approach using the multi-area scheme. The nodal pricing approach is introduced to allocate the transmission costs by the control of nodal prices in a single area network. As the number of equations is dependent on the number of buses and generators, this method will be very ti...

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...

A key feature of food products is their perishability. Within the short marketing window that characterizes most food and ag products, demand is typically highly stochastic and difficult to predict. This combination of features poses substantial challenges to retailers when pricing products and has implications for performance that ripples through vertical food chains. For many food products, p...

As the cloud computing market matures, effective pricing design remains a challenging problem. Electricity is a major contributor to the cloud’s recurring costs and may increase significantly in the near future. As the cloud market gets more competitive, there will be a need for more cost-conscious dynamic pricing design. Additionally, today’s cloud provider’s pricing mechanisms act almost obli...

‎Pricing weather derivatives is becoming increasingly useful‎, ‎especially in developing economies‎. ‎We describe a statistical model based approach for pricing  weather derivatives by modeling and forecasting daily average temperatures data which exhibits long-range dependence‎. ‎We pre-process the temperature data by filtering for seasonality and volatility an...

We introduce a dynamic pricing model for a monopolistic company selling a perishable product to a finite population of strategic consumers (customers who are aware that pricing is dynamic and may time their purchases strategically). This problem is modeled as a stochastic dynamic game in which the company’s objective is to maximize total expected revenues, and each customer maximizes the expect...

Internet pricing is receiving increased attention in industry and academia. In this paper, we report the results of comparing two Internet pricing models. Using simulation techniques, we evaluate the technical and economic efficiencies of the Smart Market model proposed by MacKie-Mason & Varian (1993) and compare it with Dynamic Capacity Contracting, a pricing scheme that we have developed. Dyn...