Pricing Asian options based on the arithmetic average, under the Black and Scholes model, involves estimating an integral (a mathematical expectation) for which no analytical solution is available. Pricing their American-style counterparts, which provide early exercise opportunities, poses the additional difficulty of solving a dynamic optimization problem to determine the optimal exercise stra...

This paper analyzes the question of whether Ryanair’s pricing strategies have changed over time. We create a panel dataset of fares for all of Ryanair’s European flights over a two-year period, from 1 January 2006 to 31 December 2007. We calculate the average fare over a 90-day period prior to departure and the intensity of dynamic pricing for each flight in the panel, in particular analysing t...

1 Background In many regions, electricity demand varies significantly based on time of day. The difference in electricity demand between peak and off-peak time periods has increased annually in Japan.1 A decreased load factor implies a high adjustment of electricity supply. Thus, electricity suppliers must increase the electricity price, which might lead to a decrease in consumer welfare. To re...

Dynamic pricing is a pricing strategy where a firm adjust the price for their products and services as a function of its perceived demand at different times. In this paper, we show how Evolutionary algorithms (EA) can be used to analyse the effect of demand uncertainty in dynamic pricing. The experiments are conducted in a range of dynamic pricing problems considering a number of different stoc...

The Internet is changing the automotive industry as the traditional manufacturer and dealer structure faces increased threats from third party e-tailers. Dynamic pricing together with the Direct-to-Customer business model can be used by manufacturers to respond to these challenges. Indeed, by coordinating production and inventory decisions with dynamic pricing, the automotive industry can incre...

Bilgi teknolojilerindeki gelişmeler ve alışveriş faaliyetlerinin çevrimiçi ortamlarda daha fazla gerçekleştirilmesiyle birlikte, işletmeler, kazançlarını artırmak amacıyla algoritmik fiyatlandırma olarak adlandırılan gerçek zamanlı mekanizmalarını kullanmaya başlamışlardır. Bu çalışmada yöntemleri olan kişiselleştirilmiş ile dinamik uygulamalarına yönelik tüketicilerin fiyat adaleti algısı, duy...

Virtually all manufacturing and service industries are susceptible to periods of supply and demand mismatches. Due to capacity limitations and demand uncertainties, firms producing multiple products may frequently encounter instances where one of their products faces shortages while the other has excess inventories. In order to alleviate the level of such inventory mismatches, several tools may...

Dynamic energy pricing is a promising development that addresses the concern of finding an environmentally friendly solution to meeting energy needs of customers while minimizing their electrical energy bill. In this paper, we mathematically formulate the electrical energy bill minimization problem for cooperative networked consumers who have a single energy bill, such as those working in a com...