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...

On-demand service platforms (e.g., Uber, Lyft) match consumers with independent workers nearby at short notice. To manage fluctuating 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 str...

We quantify the welfare effects of zone pricing, or setting common prices across distinct markets, in retail oligopoly. Although monopolists can only increase profits by price discriminating, this need not be true when firms face competition. With novel data covering the retail home improvement industry, we find that Home Depot would benefit from finer pricing but that Lowe’s would prefer coars...

In this paper, we assume a firm tries to determine the optimal price, vehicle route and location of the depot in each zone to maximise its profit. Therefore, in this paper zone pricing is studied which contributes to the literature of location-routing problems (LRP). Zone pricing is one of the most important pricing policies that are prevalently used by many companies. The proposed problem is v...

Multi-store retailers have the ability to offer different prices based on the geography of their stores. They sometimes do, but often only to a limited extent. This is observed in home improvement retailing, where the large retail chains charge different prices nationally but opt not to set prices store-by-store or even by market. Instead, prices are assigned to zones spanning several markets t...

The objective of this report is to investigate methodologies for zone creation suitable for zonal pricing by the California ISO. It is recognized that in meshed networks, zones are only approximations to individual node pricing. The objective, however, is to create zones that closely approximate the "correct" nodal prices under most conditions and where the majority of the "commercially signifi...

Zone of tolerance has emerged as a key concept for guiding pricing decisions. It directs that user resistance to prices for new services or price increases to existing services will be minimized if they are within this zone, and that if discounts are to be effective in inducing additional use they should be of sufficient magnitude to be outside this zone. External reference prices can be used t...

In this paper, a new form of weather derivative contract, namely the climatic zone-based growth degree-day (GDD) contract, is introduced. The objective is to increase the risk management efficiency in the agricultural sector of China and to reduce the model dimension of multi-regional temperature-based weather derivatives pricing. Since the proposed contract serves as a risk management tool for...

This paper proposes an agent based mobile negotiation framework for personalized pricing of last minutes theatre tickets whose values are dependent on the time remaining to the performance and the locations of potential customers. In particular, case based reasoning and fuzzy cognitive map techniques are adopted in the negotiation framework to identify the best initial offer zone and adopt mult...