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

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... more

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...

This paper proposes distributed joint power and admission control algorithms for the management of interference in two-tier femtocell networks, where the newly-deployed femtocell users (FUEs) share the same frequency band with the... more

This paper proposes distributed joint power and admission control algorithms for the management of interference in two-tier femtocell networks, where the newly-deployed femtocell users (FUEs) share the same frequency band with the existing macrocell users (MUEs) using code-division multiple access (CDMA). As the owner of the licensed radio spectrum, the MUEs possess strictly higher access priority over the FUEs; thus, their quality-of-service (QoS) performance, expressed in terms of the prescribed minimum signal-to-interference-plus-noise ratio (SINR), must be maintained at all times. For the lower-tier FUEs, we explicitly consider two different design objectives, namely, throughput-power tradeoff optimization and soft QoS provisioning. With an effective dynamic pricing scheme combined with admission control to indirectly manage the cross-tier interference, the proposed schemes lend themselves to distributed algorithms that mainly require local information to offer maximized net utility of individual users. The approach employed in this work is particularly attractive, especially in view of practical implementation under the limited backhaul network capacity available for femtocells. It is shown that the proposed algorithms robustly support all the prioritized MUEs with guaranteed QoS requirements whenever feasible, while allowing the FUEs to optimally exploit the remaining network capacity. The convergence of the developed solutions is rigorously analyzed, and extensive numerical results are presented to illustrate their potential advantages.

Suitable pricing models for Internet services represent one of the main prerequisites for a successfully running implementation of a charging and accounting system. This paper introduces general aspects influencing the choice of a pricing... more

Suitable pricing models for Internet services represent one of the main prerequisites for a successfully running implementation of a charging and accounting system. This paper introduces general aspects influencing the choice of a pricing model in practical situations and presents a survey as well as a classification of relevant and advanced approaches to be found in the scientific literature. First performance results on charging extensions within the Internet are presented, which are completed by a set of market price simulations for dynamic pricing models within the same implementation environment. Based on cost model investigations some detailed insights into price and cost issues from an Internet Service Provider's (ISP) point of view are given. Moreover, current challenges as well as problems are discussed in a practical context as investigated in the Swiss National Science Foundation project Charging and Accounting Technology for the Internet (CATI).

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... more

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.

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.... more

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.

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... more

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.

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.... more

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.