This paper deals with pricing and modal split in a competitive mass transit/highway system with heterogeneous commuters. Two groups of commuters that di€er in their disutility from travel time, schedule delay and transit crowding, select the transit or auto mode for traveling from a residential area to a workplace. We compare three pricing schemes: the marginal cost-based transit fare with no-t...

We study a mean-variance capital asset pricing model (CAPM) in which investors have different probability beliefs about assets returns and different attitudes towards risk, all assets are risky, short-selling is allowed and satiation is possible. First, we prove that there exists a competitive equilibrium in the model under a rather general condition. This condition indicates a simple relations...

We develop an aggregative games approach to study oligopolistic price competition with multiproduct firms. We introduce a new class of IIA demand systems, derived from discrete/continuous choice, and nesting CES and logit demands. The associated pricing game with multiproduct firms is aggregative and a firm’s optimal price vector can be summarized by a uni-dimensional sufficient statistic, the ...

Motivated by notions of aversion to Knightian uncertainty, this paper develops the theory of competitive asset pricing and consumption/portfolio choice with homothetic recursive preferences that allow essentially any homothetic uncertainty averse certainty-equivalent form. The market structure is scale invariant but otherwise general, allowing any trading constraints that scale with wealth. Tec...

The Differentiated Services framework (DiffServ) has been proposed to provide multiple Quality of Service (QoS) classes over IP networks. A network supporting multiple classes of service also requires a differentiated pricing structure. In this work, we propose a pricing algorithm in a DiffServ environment based on the cost of providing different levels of quality of service to different classe...

Marketing establishes a communication network between producers and consumers. Nowadays, marketing approach is customer-focused and products are directly oriented to meet customer needs. Marketing, which is a long process, needs organization and management. Therefore strategic marketing planning becomes more and more important in today’s competitive conditions. Main focus of this paper is to ev...

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...

The advent of the digital economy has provided unprecedented opportunities for suppliers and intermediaries to experiment with new pricing strategies. New information technologies not only enable businesses to charge flexible prices on the Web, but also allow for new price setting mechanisms in which consumers specify their interests and requirements. Economic appropriateness, technical feasibi...

On-demand service platforms (e.g., Uber, Lyft) match consumers with independent workers nearby at short notice. To manage uctuating supply and demand conditions across market locations (zones), many on-demand platforms provide market forecasts to workers and practice surge pricing, wherein the price in a particular zone is temporarily raised above the regular price. We jointly analyze the strat...

We analyze the impact of market share on advertising and pricing decisions by firms that sell to loyal, non-shopping customers and can advertise to shoppers through an information intermediary or “gatekeeper.” In equilibrium the firm with the smaller loyal market advertises more aggressively but prices less competitively than the firm with the larger loyal market, and there is no equilibrium in...