publication . Other literature type . Article . 1997

Periodic Pricing of Seasonal Products in Retailing

Gabriel R. Bitran; Susana V. Mondschein;
  • Published: 01 Jan 1997
  • Publisher: Institute for Operations Research and the Management Sciences (INFORMS)
Abstract
This paper studies intertemporal pricing policies when selling seasonal products in retail stores. We first present a continuous time model where a seller faces a stochastic arrival of customers with different valuations of the product. For this model, we characterize the optimal pricing policies as functions of time and inventory. We use this model as a benchmark against which we compare more realistic models that consider periodic pricing reviews. We show that the structure of the optimal pricing policies in this case is consistent with the procedures observed in practice; retail stores successively discount the product during the season and promote a liquidat...
Subjects
free text keywords: dynamic pricing, retailing, stochastic models, dynamic programming, Management Science and Operations Research, Strategy and Management, Valuation (finance), Variable pricing, Economics, Product (business), Stochastic modelling, Dynamic pricing, Profit (economics), Dynamic programming, Time horizon, Microeconomics
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publication . Other literature type . Article . 1997

Periodic Pricing of Seasonal Products in Retailing

Gabriel R. Bitran; Susana V. Mondschein;