Technical Note-Dynamic Pricing with Gain-Seeking Reference Price Effects

• 成果类型: Article; Proceedings Paper
• 署名作者: Hu, Zhenyu; Chen, Xin; Hu, Peng
• 署名单位: National University of Singapore; University of Illinois System; University of Illinois Urbana-Champaign; Huazhong University of Science & Technology
• 刊物名称: OPERATIONS RESEARCH
• ISSN/ISSBN: 0030-364X
• DOI: 10.1287/opre.2015.1445
• 发表日期: 2016
• 页码: 150-157
• 关键词: coordinating inventory control; Fixed Ordering Cost; random demand; strategies; IMPACT

摘要

We study a dynamic pricing problem of a firm facing reference price effects at an aggregate demand level, where demand is more sensitive to gains than losses. We find that even the myopic pricing strategy belongs to one type of discontinuous maps, which can exhibit complex dynamics over time. Our numerical examples show that, in general, the optimal pricing strategies may not admit any simple characterizations and the resulting reference price/price dynamics can be very complicated. We then show for a special case that a cyclic skimming pricing strategy is optimal, and we provide conditions to guarantee the optimality of high-low pricing strategies.