Inspired by new developments in dynamic spectrum access, we study the dynamic pricing of wireless internet access when demand and capacity (i.e., available bandwidth) are both stochastic. The demand for wireless internet access has increased enormously in recent years. However, the spectrum available to wireless service providers is limited. The industry has thus expanded conventional license-b...

Nowadays, traffic management policy in metropolitans is focused on increasing the share of public transit. The limitation of supply and slowing growth of road infrastructures have provided congestion for users who choose personal cars. Therefore, applying demand management policies which decrease the utility of personal cars and increase the tendency to public transit can be very important. Con...

We use pricing as an effective strategy to allocate network resources in an efficient way so as to maximize a service provider’s revenue. Among all static and dynamic pricing strategies, an auction approach is a widely proposed decentralized mechanism. We propose a scenario where all clients can bid for their required bandwidth as well as the price they are willing to pay. The service provider ...

The Internet offers the potential for dynamic pricing for a wide range of products across the supply chain. Dynamic pricing can be formally defined as the buying and selling of goods in markets where prices move quickly in response to supply and demand fluctuations. Unlike physical markets where change occurs slowly because of information delays, change occurs very rapidly on the Internet. In t...

A standard definition of dynamic pricing in airline markets typically focuses on how fares evolve over the booking period that precedes a flight’s take-off. Our research shows that such a definition is lacking because it fails to connect fare changes to some guiding principles of revenue management, defined as the combined methods used by carriers to set their fares. Once such a connection is m...

In this paper, we consider the pricing decision of a retailer who experiences peak demand for a product during a given time interval and wishes to stabilize the demand by adjusting the sales price. The stabilization of demand brings about desirable outcomes such as a reduction in the need for capacity investment and improves the production efficiency in the supply chain. We establish a continuo...

The purpose of the paper is to present a step-by-step development of the transportation optimization model with random parameters, network design variables and with pricing. The well-known deterministic linear transportation model with network design 0-1 variables is shortly discussed and it is extended in two separate ways. Firstly, randomness is modeled by so-called here-and-now approach and ...

In this paper, we investigate and model interactions and incentives between competing ISPs employing different pricing strategies (dynamic congestion-based pricing vs. volume pricing). We focus here on a scenario where all users are considered to be multihomed. Keywordsmultihoming; pricing; congestion marks; future Internet

In this paper we study dynamic pricing mechanisms of financial derivatives. A typical model of such pricing mechanism is the so-called g–expectation defined by solutions of a backward stochastic differential equation with g as its generating function. Black-Scholes pricing model is a special linear case of this pricing mechanism. We are mainly concerned with two types of pricing mechanisms in a...