Cooperative advertising is an agreement between a manufacturer and a retailer to share advertising cost at the local level. Previous studies have not investigated cooperative advertising for complementary products and their main focus was only on one good. In this paper, we study a two-echelon supply chain consisting of one manufacturer and one retailer with two complementary goods. The demand ...

In order to reduce the user latency, the web sites disseminate some of their information to surrogate caches located closer to the users. We discuss a simple differentiated service type architecture for content delivery networks. A pricing scheme is next proposed to complement this architecture and provide fair service to the subscribed publishers. Then, we show that the suggested pricing schem...

Bulow and Levin’s (2006) “Matching and Price Competition” studies a matching model in which hospitals compete for interns by offering wages. We relax the assumption of symmetric linear costs and compare the pricing equilibrium that results to the firm-optimal competitive equilibrium. With linear and asymmetric costs, competition in the pricing equilibrium may not be localized, but all other qua...

Designing a global pricing strategy for a new pharmaceutical product has become increasingly difficult as geographic reference pricing and parallel trade have introduced global price interdependencies between different nations. What may have been an optimal pricing strategy in a single country may no longer be optimal when considering the international ramifications of this price. The prices se...

Future communication networks are envisioned to be based upon a new communication paradigm which is user centric, i.e., users have freedom to choose a service provider to maximize their utilities. Pricing schemes adopted by service providers will impact the decision of users in selecting networks. In this paper, we formulate the problem as a Markov Decision Process (MDP) framework and apply Q-l...

Optimal stopping is a sub-field of probability theory that is present within mathematical finance, mathematical statistics, stochastic calculus and other disciplines. In mathematical finance, one well known problem is the pricing of an American put option. In this thesis we first give a brief review of some general optimal stopping theory, its connection to free-boundary problems and we then ex...

This paper considers the pricing decision faced by a seller of bundles composed of a service and an associated product offered to customers on a subscription basis using a two-part tariff scheme. An optimal pricing policy that maximizes the profit of a firm is obtained using a dynamic programming approach and it is found that, in the long run, there is an optimal number of customers associated ...

I consider the optimal pricing problem faced by a freelance worker on an on-demand labor platform. Service requests arriving while the worker is busy are lost forever. Thus an hourly (or per-unit-time in general) pricing strategy appropriately captures the opportunity cost of accepting a job. With the view of improving capacity utilization in the face of arrival uncertainty, the worker may be t...

We consider the joint pricing and inventory control problem for a single product whose demand distribution in each period is determined both by whether or not a sale price is offered in the current period, and the number of periods since the last time the sale price was offered. We show that optimal inventory ordering policy is a state dependent base stock policy; however, the optimal pricing p...

Pricing is one of the best tools to improve the efficiency of highly congested transportation networks. It has been shown that an optimal toll pattern can be determined by applying the welfare-economics principle of marginal pricing. Because implementing the marginal pricing solution to the toll optimization problem requires charging each arc of the network any real valued toll, which is not re...