Title :
Dynamic and Differential Pricing Strategies for Revenue Management Problems
Author :
Li, Li ; Chen, Rongqiu ; Lei, Yan ; Bu, Xiangzhi
Author_Institution :
Huazhong Univ. of Sci. & Technol., Wuhan
Abstract :
In many industries, managers face the problem of selling a given stock of assets by a deadline. The problem of dynamically and differentially pricing such assets is investigated when demand is price sensitive and stochastic and the firm´s objective is to maximize expected revenue. Based on intensity control theory, the fluid model to the stochastic problem is formulated and the optimal pricing is derived. The impacts of dynamic and differential pricing on revenue are analyzed through an extensive numerical study.
Keywords :
organisational aspects; pricing; differential pricing strategy; dynamic pricing; intensity control theory; optimal pricing; revenue management; Asset management; Consumer electronics; Control theory; Fluid dynamics; Internet; Manufacturing industries; Marketing and sales; Pricing; Stochastic processes; Technology management; Differential pricing; Dynamic pricing; Fluid approximation; Stochastic demand;
Conference_Titel :
Service Systems and Service Management, 2007 International Conference on
Conference_Location :
Chengdu
Print_ISBN :
1-4244-0885-7
Electronic_ISBN :
1-4244-0885-7
DOI :
10.1109/ICSSSM.2007.4280129
