In this paper we present an analysis of investment incentives for network infrastructure owners under two different pricing strategies: congestion based negative externality pricing and the prevalent flat rate pricing. The challenge in a networked environment is to increase capacity of the different components of the network appropriately based on demand for these different components. We devel...

We study the optimal pricing and replenishment decisions in an inventory system with a price-sensitive demand, focusing on the benefit of the inventory-based dynamic pricing strategy. We find that demand variability impacts the benefit of dynamic pricing not only through the magnitude of the variability but also through its functional form (e.g., whether it is additive, multiplicative, or other...

inventory models play an important role in determining the optimal ordering and pricing policies. much work has been reported in literature regarding inventory models with finite or infinite replenishment. but in many practical situations the replenishment is governed by random factors like procurement, transportation, environmental condition, availability of raw material etc., hence, it is nee...

T price for a product may be set too low, causing the seller to leave money on the table, or too high, driving away potential buyers. Contingent pricing can be useful in mitigating these problems. In contingent pricing arrangements, price is contingent on whether the seller succeeds in obtaining a higher price within a specified period. We show that if the probability of obtaining the high pric...

This article presents a review of the issues associated with a manufacturer’s pricing strategies in a twoechelon supply chain that comprises one manufacturer and two competing retailers, with warranty period-dependent demands. The manufacturer, as a Stackelberg leader, specifies wholesale prices to two competing retailers who face warranty period-dependent demand and have different sales costs....

This paper studies pricing strategies for networks with stochastic capacity variation. Call-level simulation is used to compare the profit generated with four different pricing models, and with different policies for the management of call dropping episodes in the network. Both user-oriented and network-oriented performance metrics are considered. The simulation results show that the choice of ...

We consider dynamic pricing and replenishment decisions for a production/inventory system modeled by a make-to-stock queue. The potential customer demand is generated by a MarkovModulated (environment-dependent) Poisson process and the actual demand depends on the price offered at the time of the transaction. Using a Markov Decision Process framework, we obtain results on the structure of the o...

a r t i c l e i n f o Keywords: Business-to-business pricing Price setting Industrial pricing decisions Behavioral bias in pricing Business-to-business pricing research has often focused on developing rational and normative frameworks and models for pricing issues, strategies and tactics. However, there has been less attention given to behavioral models that help us understand the realities of ...

With the development of information technology, data communication service has been a key issue in modern business. The important task for data communication network is, ultimately, to determine an effective pricing strategy. However, pricing of service provider have been studied, but primarily pricing in a monopolistic setting. Thus, we construct a new pricing model which includes not only the...

We relax the assumption of symmetric linear costs in B&L’s (2006) “Matching and Price Competition” and compare the pricing equilibrium that results to the firmoptimal competitive equilibrium. With linear and asymmetric costs, competition may not be localized in the pricing equilibrium, but all other qualitative comparisons of B&L (2006) hold. With non-linear and symmetric costs workers’ average...