General Service Pricing Strategies Research Based on Dynamic Stochastic Wealth Model

Author

Cai, Yongming ; Chen, Wei

Author_Institution

Sch. of Manage., Univ. of Jinan, Jinan

fYear

2008

fDate

3-5 Aug. 2008

Firstpage

633

Lastpage

637

Abstract

The authors investigate cobweb type service price fluctuations with adaptive learning, and put forward a dynamic service pricing method based on the dynamic stochastic wealth model (DSWM). In this model, authors treat the service market as an expectation feedback system, where the current market equilibrium price of service determined by aggregated individual service providerpsilas expectations of next periodpsilas yield. After several rounds of price adjustment, optimal pricing strategies can be conducted. In order to describe the fluctuations of price in future, authors also developed a set of market impact functions with the technique of dynamic harmonic regression modification to simulate the market impact.

Keywords

feedback; learning (artificial intelligence); pricing; stochastic processes; adaptive learning; dynamic harmonic regression; dynamic service pricing method; dynamic stochastic wealth model; expectation feedback system; general service pricing strategies; market equilibrium price; Customer relationship management; Customer satisfaction; Electronic commerce; Feedback; Fluctuations; Forward contracts; Information security; Pricing; Stochastic processes; System testing;

fLanguage

English

Publisher

ieee

Conference_Titel

Electronic Commerce and Security, 2008 International Symposium on

Conference_Location

Guangzhou City

Print_ISBN

978-0-7695-3258-5

Type

conf

DOI

10.1109/ISECS.2008.35

Filename

4606143