Optimal Dynamic Pricing Strategies with Two Differentiated Products

2006 ◽  
Author(s):  
Wei Jie ◽  
Tu Fengsheng
Keyword(s):  
Dynamic Pricing ◽  
Differentiated Products ◽  
Pricing Strategies ◽  
Optimal Dynamic

scholarly journals Optimal Policies for the Pricing and Replenishment of Fashion Apparel considering the Effect of Fashion Level

Complexity ◽  
2019 ◽  
Vol 2019 ◽  
pp. 1-12 ◽  
Author(s):  
Qi Chen ◽  
Qi Xu ◽  
Wenjie Wang
Keyword(s):  
Dynamic Pricing ◽  
Price Policy ◽  
Pricing Strategy ◽  
Sensitivity Analyses ◽  
Pricing Strategies ◽  
System Parameters ◽  
Optimal Dynamic ◽  
Replenishment Cycle ◽  
Fashion Apparel ◽  
Short Product

Fashion apparel, with short product lifecycles and highly volatile demand, requires careful attention during both the initial ordering periods before the selling season and during the selling season, with its decisions regarding price and replenishment. Using Pontryagin’s maximum principle method, this study investigates the problem of the dynamic pricing strategy and replenishment cycle for fashion apparel by considering the effect of fashion level on demand. First, we provide a framework for fashion apparel by formulating a model that includes both price and demand at different fashion levels. We then provide an algorithm to derive the optimal dynamic pricing strategy and replenishment cycle. Numerical examples and sensitivity analyses of the main system parameters are provided to demonstrate the obtained results, which form the basis for managerial insights. It is shown that the apparel retailer has three types of optimal dynamic pricing strategies and that the optimal strategy is independent of the replenishment cycle. The apparel retailer is able to realize the profit advantage of a continuously variable price policy by adjusting the sales price periodically.

scholarly journals Pricing Strategies of Logistics Distribution Services for Perishable Commodities

Algorithms ◽  
2018 ◽  
Vol 11 (11) ◽  
pp. 186
Author(s):  
Tao Li ◽  
Yan Chen ◽  
Taoying Li
Keyword(s):  
Dynamic Pricing ◽  
Consumer Satisfaction ◽  
Service Providers ◽  
Time Constraints ◽  
Optimal Pricing ◽  
Pricing Strategies ◽  
Pricing Model ◽  
Logistics Service ◽  
Distribution Services ◽  
Perishable Goods

The problem of pricing distribution services is challenging due to the loss in value of product during its distribution process. Four logistics service pricing strategies are constructed in this study, including fixed pricing model, fixed pricing model with time constraints, dynamic pricing model, and dynamic pricing model with time constraints in combination with factors, such as the distribution time, customer satisfaction, optimal pricing, etc. By analyzing the relationship between optimal pricing and key parameters (such as the value of the decay index, the satisfaction of consumers, dispatch time, and the storage cost of the commodity), it is found that the larger the value of the attenuation coefficient, the easier the perishable goods become spoilage, which leads to lower distribution prices and impacts consumer satisfaction. Moreover, the analysis of the average profit of the logistics service providers in these four pricing models shows that the average profit in the dynamic pricing model with time constraints is better. Finally, a numerical experiment is given to support the findings.

Optimal dynamic pricing for an electricity retailer in the price-responsive environment of smart grid

2021 ◽  
Vol 130 ◽  
pp. 107004
Author(s):  
Hossein Taherian ◽  
Mohammad Reza Aghaebrahimi ◽  
Luis Baringo ◽  
Saeid Reza Goldani
Keyword(s):  
Smart Grid ◽  
Dynamic Pricing ◽  
Optimal Dynamic

Existence and uniqueness of optimal dynamic pricing and advertising controls without concavity

2018 ◽  
Vol 46 (2) ◽  
pp. 199-204 ◽  
Author(s):  
Bertrand Crettez ◽  
Naila Hayek ◽  
Georges Zaccour
Keyword(s):  
Dynamic Pricing ◽  
Existence And Uniqueness ◽  
Optimal Dynamic

scholarly journals On the Impact of HOT Lane Tolling Strategies on Total Traffic Level

2012 ◽  
Vol 48 (3) ◽  
Author(s):  
Soheil Sibdari ◽  
Mansoureh Jeihani
Keyword(s):  
Numerical Analysis ◽  
Dynamic Pricing ◽  
User Equilibrium ◽  
Pricing Strategies ◽  
Peak Period ◽  
Dynamic Strategy ◽  
Traffic Level ◽  
The Right ◽  
The Impact ◽  
High Occupancy Toll

This paper shows how tolling (or pricing) strategies can be used to control the congestion levels of both untolled and high occupancy toll (HOT) lanes. Using a user-equilibrium method, the paper calculates the number of travelers on each route during the peak period and provides a numerical analysis that determines the distribution of travelers for different tolling strategies. It shows that with the right tolling strategy some travelers who initially plan to use the untolled lane during the peak period will change both their routes (i.e., select the HOT lane) and departure times (i.e., depart earlier or later). Using this result, the paper compares static and dynamic pricing strategies and shows that with a dynamic strategy a larger profit can be earned and congestion reduced in the untolled lane.

OPTIMAL PRICING AND PRODUCTION POLICIES OF A MAKE-TO-STOCK SYSTEM WITH FLUCTUATING DEMAND

2009 ◽  
Vol 23 (2) ◽  
pp. 205-230 ◽  
Author(s):  
Jean-Philippe Gayon ◽  
Işılay Talay-Değirmenci ◽  
Fikri Karaesmen ◽  
E. Lerzan Örmeci
Keyword(s):  
Dynamic Pricing ◽  
Numerical Study ◽  
Optimal Pricing ◽  
Pricing Strategies ◽  
Pricing Policy ◽  
Stock Level ◽  
Production Inventory ◽  
Static Pricing ◽  
Make To Stock ◽  
Production Inventory System

We study the effects of different pricing strategies available to a production–inventory system with capacitated supply, which operates in a fluctuating demand environment. The demand depends on the environment and on the offered price. For such systems, three plausible pricing strategies are investigated: static pricing, for which only one price is used at all times, environment-dependent pricing, for which price changes with the environment, and dynamic pricing, for which price depends on both the current environment and the stock level. The objective is to find an optimal replenishment and pricing policy under each of these strategies. This article presents some structural properties of optimal replenishment policies and a numerical study that compares the performances of these three pricing strategies.

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