this paper studies the dynamic behavior of price elasticity and its effects on the overall profit. although price elasticity has a significant effect on sales, its dynamics have not been examined so far in pricing models. in this paper, a simple pricing model is suggested in which, price elasticity is considered dynamic. the suggested pricing model is concerned with a monopolist that its object...

Abstract   We extend the concept of dynamic pricing by integrating it with “overselling with opportunistic cancellation” option, within the framework of dynamic policy. Under this strategy, to sell a stock of perishable product (or capacity) two prices are offered to customers at any given time period. Customers are categorized as high-paying and low-paying ones. The seller deliberately oversel...

This paper studies the dynamic behavior of price elasticity and its effects on the overall profit. Although price elasticity has a significant effect on sales, its dynamics have not been examined so far in pricing models. In this paper, a simple pricing model is suggested in which, price elasticity is considered dynamic. The suggested pricing model is concerned with a monopolist that its object...

 In this research UF cheese pricing is considered and Pegah, Pak, Kaleh, Rouzaneh and Mihan firms’ data, as five main UF cheese competitive firms of Iran in breakfast cheese competitive market, is used. By using these firm’s sales data, production data and price of each ton of UF cheese in nineteen work-periods (each work-period is 6 months), their sales equations are estimated for each work-pe...

Chapter Outline Introduction 61 Background 63 Distributional Effects of Dynamic Pricing 65 Barriers to Dynamic Pricing 69 Unfairness of Flat Rate Pricing 71 Dynamic Pricing in Other Industries 73 Overcoming the Barriers to Dynamic Pricing 74 The Effect of Dynamic Pricing on Low-Income Consumers 75 Accommodating Potential Objections 77 Conclusions 78 Appendix: Quantifying the Hedging Cost Premiu...

Dynamic pricing is the dynamic adjustment of prices to consumers depending upon the value these customers attribute to a product or service. Today’s digital economy is ready for dynamic pricing; however recent research has shown that the prices will have to be adjusted in fairly sophisticated ways, based on sound mathematical models, to derive the benefits of dynamic pricing. This article attem...

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...

The sports industry has seen a rapid adoption of dynamic pricing practices in recent years. However, there is still limited understanding on the effect of dynamic pricing on revenue in sport event settings and how to execute effective dynamic pricing strategies. In this paper, we address these issues by developing a comprehensive demand model for single-game ticket sales that can be used to pre...

We consider the problem of a firm selling multiple products that consume a single resource over a finite time period. The amount of the resource is exogenously fixed. We analyze the difference between a dynamic pricing policy and a list price capacity control policy. The dynamic pricing policy adjusts prices steadily resolving the underlying problem every time step, whereas the list pricing pol...

This paper reports on the results of a dynamic pricing experiment that compares the performance of three popular pricing programs–hourly pricing, critical peak pricing, and critical peak-pricing with a rebate–for a representative sample from the population of households in the District of Columbia. The sampled households differ in terms of their income levels, electricityusing appliance holding...