publication . Other literature type . Article . Preprint . 2018

Pricing policies for selling indivisible storable goods to strategic consumers

Gerardo Berbeglia; Gautam Rayaprolu; Adrian Vetta;
  • Published: 04 Jun 2018
  • Publisher: Springer Science and Business Media LLC
Abstract
We study the dynamic pricing problem faced by a monopolistic retailer who sells a storable product to forward-looking consumers. In this framework, the two major pricing policies (or mechanisms) studied in the literature are the preannounced (commitment) pricing policy and the contingent (threat or history dependent) pricing policy. We analyse and compare these pricing policies in the setting where the good can be purchased along a finite time horizon in indivisible atomic quantities. First, we show that, given linear storage costs, the retailer can compute an optimal preannounced pricing policy in polynomial time by solving a dynamic program. Moreover, under su...
Subjects
ACM Computing Classification System: TheoryofComputation_MISCELLANEOUS
free text keywords: Management Science and Operations Research, General Decision Sciences, Dynamic pricing, Economic surplus, Price discrimination, Monopolistic competition, Price optimization, Economics, Revenue, Monopoly, Microeconomics, Dynamic programming, Computer Science - Computer Science and Game Theory
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publication . Other literature type . Article . Preprint . 2018

Pricing policies for selling indivisible storable goods to strategic consumers

Gerardo Berbeglia; Gautam Rayaprolu; Adrian Vetta;