Optimal Pricing Policy for Successive Product Generations in the Presence of Value Uncertainty

2021 ◽  
Author(s):  
Jeongeun Sim ◽  
Jaelynn Oh ◽  
Woonghee Tim Huh
Keyword(s):  
Optimal Pricing ◽  
Pricing Policy

Optimal pricing policy design for selling cost-reducing innovation in Cournot games

2021 ◽  
Author(s):  
Mengjing Chen ◽  
Haoqiang Huang ◽  
Weiran Shen ◽  
Pingzhong Tang ◽  
Zihe Wang ◽  
...  
Keyword(s):  
Policy Design ◽  
Optimal Pricing ◽  
Pricing Policy ◽  
Cournot Games

Paying the right price for pharmaceuticals: a case study of why the comparator matters

2011 ◽  
Vol 35 (3) ◽  
pp. 267 ◽  
Author(s):  
Jean M. Spinks ◽  
Jeff R. J. Richardson
Keyword(s):  
Optimal Pricing ◽  
Regulatory Capture ◽  
Pharmaceutical Pricing ◽  
Pricing Policy ◽  
Pharmaceutical Expenditures ◽  
Public Data ◽  
The Right ◽  
Effective Use

This article considers the pricing policy for pharmaceuticals in Australia, which is widely seen as having achieved low drug prices. However, compared to New Zealand, the evidence implies that Australia might have improved its performance significantly if it had proactively sought market best pricing. The Australian record suggests that the information sought by authorities may not be sufficient for optimal pricing and that the economic evaluation of pharmaceuticals may be neither necessary nor sufficient for achieving this goal. What is known about the topic? Pharmaceutical expenditures vary significantly across countries. Few surveys exist to determine the role of price but these suggest that Australian prices are relatively low compared with most OECD countries. What does this paper add? An analysis of public data implies that Australia pays significantly higher prices than NZ for its pharmaceuticals. This is attributable to NZ’s more effective use of competition, especially in the market for generics. Australian policy effectively limits competition by the provision of price information to competing companies. Recent agreements are similarly consistent with de facto regulatory capture. What are the implications for practitioners? There should be a review of pharmaceutical pricing policies with the criterion for success being the ‘lowest’, not ‘comparable’ world prices. Comparators should include prices paid for quality drugs in all, not selected countries, where data are available.

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.

A controlled birth and death process model of optimal product pricing under stochastically changing demand

1977 ◽  
Vol 14 (2) ◽  
pp. 328-339 ◽  
Author(s):  
S. D. Deshmukh ◽  
Wayne Winston
Keyword(s):  
Market Share ◽  
Process Model ◽  
Death Process ◽  
High Price ◽  
Optimal Pricing ◽  
Future Market ◽  
Birth And Death Process ◽  
Pricing Policy ◽  
Product Pricing ◽  
Markov Decision Model

We consider the problem of product pricing when the firm's market share is changing stochastically according to a birth and death process. The current market share together with the price prevailing determine the current rate of profit made as well as the birth and death rates. The optimal pricing policy must balance the immediate advantage of setting a high price in terms of increased current profit against the disadvantage in terms of a possible erosion of the future market share. We formulate a continuous-time Markov decision model and analyse it using a recent technique developed by Lippman [6] for optimization of exponential queueing systems. The optimal pricing policy is characterized as having a sort of monotonicity property. We also analyse the dependence of the optimal policy on the problem parameters and indicate further extensions of the model.

Sign in / Sign up

Export Citation Format

Share Document