Dynamic Pricing Research Papers - Academia.edu (original) (raw)

Business Process Management (BPM) system helps organizations to measure their processes and optimize their resources. Implementing an Information System is costly and the success of the implementation depends on choice of the appropriate BPM system. This raises the necessity to evaluate the BPM system comprehensively from different perspectives. In this study an evaluation framework is designed to provide a flexible and comprehensive evaluation of a BPM system. The approach makes use of ISO Standards to measure the technical criteria and considers marketing criteria as well. Next a Decision Support System (DSS) is developed and is illustrated by evaluating and comparing two different BPM systems.

The balancing approach of electricity generation and consumption is an
essential part of a reliable power system. The mismatch between supply
and demand may also cause fluctuation in the power system. This study
proposes an incentive and penalty-based demand response (I&P-DR) program
for improving the profitability of both LSE and customers. First, we use
a parameter that weighs the financial benefits of LSE and customers and
provides considerable economic benefits to both sides. Second, an incentive
and penalty (I&P) price scheme have been employed to recompense and
penalize customers and reduce the electricity demand at peak hours. Finally,
the study analyzes the importance of (I&P-DR) and its impact on customers’
sensitivity during peak intervals. Simulation results showed that the flexibility
to consumption can be brought through the application of the proposed
(I&P-DR) program and also provide the financial benefits to both, customers
and LSEs.

- by Muhammad Hussain and +1
- •
- Demand Response, Demand Side Management, Dynamic Pricing, Energy Managment

In the context of a finite horizon model, we show that conformity based behavior creates new channels of dynamic interaction between firms, changing the nature of price competition. As time evolves, both price strategic complementarity and substitutability may arise along the equilibrium trajectory. This leads to V-shaped equilibrium price paths and oscillating trajectories of market shares. We provide also a new rational for the inversion of fashion trends.

- by Filomena Garcia
- •
- Economics, Consumer Behavior, Dynamic Pricing, Conformity
- by Jitendra Rai
- •
- Electrical Engineering, Renewable Energy, Energy, Power System Economics
- by Juong-Sik Lee
- •
- Cognitive Science, Distributed Computing, User Participation, Social Welfare
- by Ioana Popescu
- •
- Marketing, History, Applied Mathematics, Perception
- by Jean-pierre Dubé
- •
- Marketing, Economic Theory, Dynamic Pricing, Differentiated Products

One of the primary challenges with stock selection is the identification of the best stock features to use for the selection of winning stocks. Typically, there are easily more than 50 variables that can be used for stock selection. Many stock investors prefer to keep stock selection as simple as possible and therefore are interested in identifying a few stock variables to use for the identification of winning stocks. Principal Component Analysis is a statistical technique that reduces a large number of inputs of data to a few factors. Once the factors are established, they are displayed in a perceptual map. The perceptual map provides a clear picture of the winning stocks that should be selected for trading.

- by Kyle Lin
- •
- Forecasting, Dynamic programming, Revenue Management, Multidisciplinary
- by Paolo malighetti
- •
- Management, Air Transport, Urban And Regional Planning, Business Management
- by Renato Redondi
- •
- Management, Air Transport, Urban And Regional Planning, Business Management

Due to its success and acceptance in the airline and hospitality industry and the growing availability of behavioral, engagement, and attitudinal consumer data, dynamic pricing strategies are gaining popularity. The purpose of this systematic literature review is to answer the research question about how do dynamic pricing strategies affect customer perceptions and behaviors to avoid negative consumer reactions. The synthesis of over 50 articles revealed eight different research streams like for example the factors moderating the impact of dynamic pricing on customer behavior, strategic purchasing behavior in response to dynamic pricing, effect of dynamic pricing on customer perception of fairness, personalized dynamic pricing (PDP) and channel differentiated pricing. To advance future research, this systematic literature review identified the six propositions for further research like for example the assessment of the efficacy of different types of communication by firms seeking to mitigate the negative impacts of dynamic pricing and the assessment of the role and relevant importance of consumers' personal characteristics upon their perceptions of price changes. The findings of this study have a practical impact for managers and scholars. Scholars may use them to update their research agendas and managers to optimize their pricing strategies to increase revenues.

- by Michael Neubert
- •
- Pricing, Dynamic Pricing, Dynamic Pricing Strategies, Pricing Strategy

The aim of this study is to analyse the pricing policy adopted by Ryanair, the main low-cost carrier in Europe. The first part of the study reviews the results of literature addressing the subject of dynamic pricing, with specific reference to the air transport industry. The methodological section contains the models of reference for determining the optimal price and the

- by Renato Redondi
- •
- Management, Air Transport, Urban And Regional Planning, Business Management
- by Paolo Tullio
- •
- Algorithms, Artificial Intelligence, Machine Learning, Competition Law

- by Carol Hargreaves and +1
- •
- Green Technology, Dynamic Pricing, Dynamic Pricing Strategies, Stock Market Technical Analysis
- by Dr Vadlamani Ravi
- •
- Supply Chain Management, Decision Making, Decision support system, Scanner Data
- by Pinar Keskinocak
- •
- Management Science, Revenue Management, New Technology, Dynamic Pricing

We propose a competitive on-demand mobility model using a multi-server queue system under infinite-horizon look-ahead. The proposed approach includes a novel dynamic optimization algorithm which employs a Markov decision process (MDP) and provides opportunities to revolutionize conventional transit services that are plagued by high cost, low ridership, and general inefficiency, particularly in disadvantaged communities and low-income areas. We use this model to study the implications it has for such services and investigate whether it has a distinct cost advantage and operational improvement. We develop a dynamic pricing scheme that utilizes a balking rule that incorporates socially efficient level and the revenue-maximizing price, and an equilibrium-joining threshold obtained by imposing a toll on the customers who join the system. Results of numerical simulations based on actual New York City taxicab data indicate that a competitive on-demand mobility system supported by the proposed model increases the social welfare by up to 37% on average compared to the single-server queuing system. The study offers a novel design scheme and supporting tools for more effective budget/resource allocation, planning, and operation management of flexible transit systems.

- by Hamid R. Sayarshad
- •
- Autonomous Vehicles, Dynamic Pricing
- by Verena Kantere
- •
- Data Management, Query Optimization, Dynamic Pricing, Profitability
- by Garrett van Ryzin
- •
- Operations Research, Revenue Management, Dynamic Pricing, United States

This paper addresses the problem of room pricing in hotels. We propose a hotel revenue management model based on dynamic pricing to provide hotel managers with a flexible and efficient decision support tool for room revenue maximization. The two pillars of the proposed framework are a novel optimization model, and a multi-class scheme similar to the one implemented in airlines. Our hypothesis is that this framework can overcome the limitations associated with the research gaps in pricing literature; and can also contribute significantly in increasing the revenue of hotels. We test this hypothesis on three different approaches, and the results show an increase in revenue compared to the classical model used in literature.

- by Dawit Dessalegn
- •
- System Dynamics, Revenue Management, Dynamic Pricing, Decision support tool

Was ist Dynamic Pricing und mit welchen Konsequenzen müssen praktizierende Unternehmen beim Konsumenten rechnen? Die neuen Möglichkeiten im Bereich Data Mining und Individualisierung von Preisen, die durch die Digitalisierung im... more

- by Sébastien Fauvel and +1
- •
- Dynamic Pricing, Dynamic Pricing Strategies
- by Ali Hossam
- •
- Information Science, Information Technology, Computer Networks, Congestion Control

Pricing of products and services is a complex task for industrial marketing practitioners. The failure to understand the connection between business strategy and the pricing decision at the level of industrial products and services may lead to lost business opportunities and unsatisfied customers. In this article, the importance of strategic pricing in business relationships is discussed by examining the effects

- by Seppo Leminen
- •
- Dynamic Pricing, Business Strategy, Business Model, Empirical Study

Electricity tariff setting is a primary instrument of economic regulation. Tariff provides economic signals, which determine the volume and nature of the demand and supply of power. It is not surprising therefore that a considerable portion of the power sector reform effort is expended on rationalizing tariffs. Through this paper we aim to discuss the potential for alternative ways of charging for electricity and providing concessions to improve the affordability of essential electricity use, facilitate the equitable, efficient and full recovery of the cost of supplying electricity and provide clear information to consumers regarding the impact of their electricity use. Many of the existing tariff elements have been formulated over the years as a result of available technology. In reviewing the electricity tariff structures it is therefore important to consider some of the developments in technology particularly with respect to metering which may facilitate a greater variety in tariff structures now or in the future

- by Rajesh Garai and +1
- •
- Power System Economics, Matlab, India, Smart Metering
- by Arbie Always
- •
- Marketing, Social Welfare, Airline Industry, Risk Aversion

Considering the economic situation in Germany, the adjustment process has come to a standstill leaving persistent difierences between West and East. This paper refers to this context analyzing the export behavior comparing flrms in West and East Germany. Our estimates conflrm a strong relationship between innovations and export performance as well as structural difierences between East and West German flrms.

- by Matthias Kirbach
- •
- Dynamic Pricing, East Germany, Export Performance, Labor Productivity
- by Hani Mahmassani
- •
- Engineering, Traffic Simulation, Congestion Pricing, Dynamic Pricing

Consumers purchase conspicuous goods to satisfy not only material needs but also social needs such as prestige. In an attempt to meet these social needs, producers of conspicuous goods like cars, perfumes, and watches, highlight the exclusivity of their products. In this paper, we propose a monopoly model of conspicuous consumption using the rational expectations framework, and then examine how purchase decisions are affected by the desire for exclusivity and conformity. We show that snobs can have an upward-sloping demand curve but only in the presence of consumers who are (weakly) followers. Laboratory tests lend support for this model prediction and for the rational expectations framework. The experimental results suggest that subjects used some degree of sophisticated thinking to arrive at their first-period decisions. Their behavior in the subsequent trials, however, can be adequately captured by a purely adaptive learning mechanism. We discuss the implications of consumer lear...

- by Wilfred Amaldoss
- •
- Experimental Economics, Game Theory, Management Science, Learning in Games
- by Rahool Rai
- •
- Business, Marketing, Tourism Studies, Hospitality Management

A community integrated energy system (CIES) with an electric vehicle charging station (EVCS) provides a new way for tackling growing concerns of energy efficiency and environmental pollution, it is a critical task to coordinate flexible demand response and multiple renewable uncertainties. To this end, a novel bi-level optimal dispatching model for the CIES with an EVCS in multi-stakeholder scenarios is established in this paper. In this model, an integrated demand response program is designed to promote a balance between energy supply and demand while maintaining a user comprehensive satisfaction within an acceptable range. To further tap the potential of demand response through flexibly guiding users’ energy consumption and electric vehicles’ behaviors (charging, discharging and providing spinning reserves), a dynamic pricing mechanism combining time-of-use and real-time pricing is put forward. In the solution phase, by using sequence operation theory (SOT), the original chance-constrained programming (CCP) model is converted into a readily solvable mixed-integer linear programming (MILP) formulation and finally solved by CPLEX solver. The simulation results on a practical CIES located in North China demonstrate that the presented method manages to balance the interests between CIES and EVCS via the coordination of flexible demand response and uncertain renewables.

- by Yang Li
- •
- Renewable Energy, Scheduling, Electric Vehicles, Integrated Renewable Energy System

This study targets to measure the effect of dynamic pricing offers on the purchase intentions of consumers for a winter holiday by taking into consideration a moderated mediator role of perceived risk on this effect. The study employs an experimental design with discount level and timing of the offer (offer recency) as the manipulated conditions. The findings confirm that discount offers have positive direct effect and perceived risk has a negative direct effect on purchase intentions. The levels of discount and perceived risk, independently from each other, determine the level of purchase intentions. On the other hand, the effect of discount offers on purchase intentions is mediated by the perceived risk level of consumers. Finally, the timing of the discount offers moderates the effect of perceived risk on purchase intentions and eventually generates a moderated mediation role for perceived risk on the influence of discount offers on purchase intentions. Based on the findings of this study, some practical implications are provided.

- by Edin Güçlü Sözer
- •
- Tourism Marketing, Hospitality Studies, Perceived Risk, Dynamic Pricing
- by Luca Taschini
- •
- Dynamic Pricing, Asymmetric Information, Market Imperfection
- by Ravikumar Karumanchi
- •
- Engineering, Reinforcement Learning, Inventory Control, Markov Processes
- by Hani Mahmassani
- •
- Civil Engineering, Urban And Regional Planning, Dynamic Pricing

"This paper extends the results for capacitated lot-sizing research to include pricing. Based on a few examples, the new version appears to by much easier to solve computationally. The paper, by including price, can modify demand as well as production schedule. Due to model assumptions (form of demand) a feasible solution can be found easily, unlike CLSP.
"

- by Kjetil Haugen and +1
- •
- Mixed-integer Linear Programming, Dynamic Pricing
- by Javad Nasiri
- •
- Applied Mathematics, Prospect Theory, Loss Aversion, Business and Management
- by James Hanson
- •
- Engineering, Technology, Computer Networks, Informal Economy

A new framework for the design of a dynamic non-myopic inventory and delivery network between suppliers and retailers under the assumption of elastic demand—one that simultaneously incorporates inventory, routing, and pricing—is proposed. The developed queuing approximation method is based on optimal tolling of queues. We propose a dynamic approach for a supplier who has to deliver products to a number of retailers while maximizing social welfare through dynamic pricing that accounts for customer waiting times, inventory holding, lost-sales costs, and delivery costs. The proposed non-myopic model increases the social welfare by up to 17% compared to the marginal pricing case.

- by Chukwuka G Monyei
- •
- Electrical Engineering, Computer Science, Optimization techniques, Smart Grid
- by Yuxin Chen
- •
- Industrial Organization, Economic Theory, Social Welfare, Dynamic Pricing

We propose and estimate a model of dynamic oligopoly with durable goods and en- dogenous innovation to examine the relationship between market structure and the evo- lution of quality. Firms make dynamic pricing and investment decisions while taking into account the dynamic behavior of consumers who anticipate the product improvements and price declines. The distribution of currently owned products is a state variable that aects current demand and evolves endogenously as consumers make replacement pur- chases. Our work extends the dynamic oligopoly framework of Ericson and Pakes (1995) to incorporate durable goods. We propose an alternative approach to bounding the state space that is less restrictive of frontier firms and yields an endogenous long-run rate of innovation. We estimate the model for the PC microprocessor industry and perform counterfactual simulations to measure the benefits of competition. Consumer surplus is 2.5 percent higher ($5 billion per year) with AMD than if ...

- by Ronald Goettler
- •
- Market Structure, Dynamic Pricing, State Space, Investment Decision
- by Christopher Tang
- •
- Marketing, Game Theory, Modeling, Management Science
- by Paolo malighetti
- •
- Marketing, Tourism Management, Tourism, Low cost carriers
- by Paolo malighetti
- •
- Marketing, Tourism Management, Air Transport, Panel Data

We propose and estimate a model of dynamic oligopoly with durable goods and endogenous innovation. Firms make dynamic pricing and in- vestment decisions while taking into account the dynamic behavior of con- sumers who anticipate the product improvements and price declines. The distribution of currently owned products is a state variable that aects cur- rent demand and evolves endogenously as

- by Ronald Goettler
- •
- Dynamic Pricing, Profitability, State Space, Distance Estimation

The price is the single, most efficient tool that hoteliers have to adjust the demand and the offer in the short term. Dynamic pricing is the practice of changing the price charged for a product based on time. Using hotel room price data collected from an Internet distribution channel, this paper presents the research carried out to investigate the dynamic pricing practices of the hotels in Bilbao. The analysis shows that these hotels favour two price-changing patterns. The first pattern refers to the practice of changing a number of prices for contiguous, future target dates on the same date. The second pattern refers to the practice of changing the price a set number of days in advance of the target date (i.e. at a specific lag-day).

- by Noelia Oses Fernández
- •
- Dynamic Pricing