Optimal Dynamic Pricing for Perishable Assets with Nonhomogeneous Demand

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Wen Zhao; Yu-Sheng Zheng;
  • Journal: Management Science,volume 46,issue 3 March,pages375-388
  • Related identifiers: doi: 10.1287/mnsc.46.3.375.12063
  • Subject: yield management, dynamic pricing, inventory, finite horizon, diminishing marginal returns, nonhomogenous demand, optimal policy, threshold policies

We consider a dynamic pricing model for selling a given stock of a perishable product over a finite time horizon. Customers, whose reservation price distribution changes over time, arrive according to a nonhomogeneous Poisson process. We show that at any given time, the... View more
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