Dynamic Pricing Strategies that Consider Consumer Inertia in a Competitive Environment

2020 ◽  
pp. 177-185
Author(s):  
Yunfu Huo ◽  
Mingren Ding ◽  
Xue Yan
Keyword(s):  
Dynamic Pricing ◽  
Competitive Environment ◽  
Pricing Strategies

Toward a Profitable ISP Business in a Competitive Environment

2011 ◽  
pp. 182-200
Author(s):  
Ioanna D. Constantiou ◽  
Jörn Altmann
Keyword(s):  
Service Quality ◽  
Dynamic Pricing ◽  
Service Providers ◽  
Revenue Sharing ◽  
Competitive Environment ◽  
Internet Service Providers ◽  
Pricing Strategies ◽  
Internet Service ◽  
Flat Rate ◽  
Pricing Schemes

The market of Internet service providers (ISPs) is highly competitive. Although many different pricing schemes could be deployed in this market, two types are mainly offered: flat rate pricing and per-minute pricing. These pricing schemes are criticised for limiting ISPs’ revenues and for not addressing customer’s requirements on service quality. We focus on the ISPs’ business relationships and on their pricing strategies in order to analyse revenue sharing mechanisms. We argue that the introduction of incentive pricing schemes, such as dynamic pricing, may enable provision of service quality by improving revenue sharing among ISPs.

scholarly journals Pricing Strategies of Logistics Distribution Services for Perishable Commodities

Algorithms ◽  
2018 ◽  
Vol 11 (11) ◽  
pp. 186
Author(s):  
Tao Li ◽  
Yan Chen ◽  
Taoying Li
Keyword(s):  
Dynamic Pricing ◽  
Consumer Satisfaction ◽  
Service Providers ◽  
Time Constraints ◽  
Optimal Pricing ◽  
Pricing Strategies ◽  
Pricing Model ◽  
Logistics Service ◽  
Distribution Services ◽  
Perishable Goods

The problem of pricing distribution services is challenging due to the loss in value of product during its distribution process. Four logistics service pricing strategies are constructed in this study, including fixed pricing model, fixed pricing model with time constraints, dynamic pricing model, and dynamic pricing model with time constraints in combination with factors, such as the distribution time, customer satisfaction, optimal pricing, etc. By analyzing the relationship between optimal pricing and key parameters (such as the value of the decay index, the satisfaction of consumers, dispatch time, and the storage cost of the commodity), it is found that the larger the value of the attenuation coefficient, the easier the perishable goods become spoilage, which leads to lower distribution prices and impacts consumer satisfaction. Moreover, the analysis of the average profit of the logistics service providers in these four pricing models shows that the average profit in the dynamic pricing model with time constraints is better. Finally, a numerical experiment is given to support the findings.

scholarly journals On the Impact of HOT Lane Tolling Strategies on Total Traffic Level

2012 ◽  
Vol 48 (3) ◽  
Author(s):  
Soheil Sibdari ◽  
Mansoureh Jeihani
Keyword(s):  
Numerical Analysis ◽  
Dynamic Pricing ◽  
User Equilibrium ◽  
Pricing Strategies ◽  
Peak Period ◽  
Dynamic Strategy ◽  
Traffic Level ◽  
The Right ◽  
The Impact ◽  
High Occupancy Toll

This paper shows how tolling (or pricing) strategies can be used to control the congestion levels of both untolled and high occupancy toll (HOT) lanes. Using a user-equilibrium method, the paper calculates the number of travelers on each route during the peak period and provides a numerical analysis that determines the distribution of travelers for different tolling strategies. It shows that with the right tolling strategy some travelers who initially plan to use the untolled lane during the peak period will change both their routes (i.e., select the HOT lane) and departure times (i.e., depart earlier or later). Using this result, the paper compares static and dynamic pricing strategies and shows that with a dynamic strategy a larger profit can be earned and congestion reduced in the untolled lane.

OPTIMAL PRICING AND PRODUCTION POLICIES OF A MAKE-TO-STOCK SYSTEM WITH FLUCTUATING DEMAND

2009 ◽  
Vol 23 (2) ◽  
pp. 205-230 ◽  
Author(s):  
Jean-Philippe Gayon ◽  
Işılay Talay-Değirmenci ◽  
Fikri Karaesmen ◽  
E. Lerzan Örmeci
Keyword(s):  
Dynamic Pricing ◽  
Numerical Study ◽  
Optimal Pricing ◽  
Pricing Strategies ◽  
Pricing Policy ◽  
Stock Level ◽  
Production Inventory ◽  
Static Pricing ◽  
Make To Stock ◽  
Production Inventory System

We study the effects of different pricing strategies available to a production–inventory system with capacitated supply, which operates in a fluctuating demand environment. The demand depends on the environment and on the offered price. For such systems, three plausible pricing strategies are investigated: static pricing, for which only one price is used at all times, environment-dependent pricing, for which price changes with the environment, and dynamic pricing, for which price depends on both the current environment and the stock level. The objective is to find an optimal replenishment and pricing policy under each of these strategies. This article presents some structural properties of optimal replenishment policies and a numerical study that compares the performances of these three pricing strategies.

Dynamic Pricing Strategies with Reference Effects

2007 ◽  
Vol 55 (3) ◽  
pp. 413-429 ◽  
Author(s):  
Ioana Popescu ◽  
Yaozhong Wu
Keyword(s):  
Dynamic Pricing ◽  
Pricing Strategies

Use of dynamic pricing strategies by Airbnb hosts

2018 ◽  
Vol 30 (1) ◽  
pp. 2-20 ◽  
Author(s):  
Chris Gibbs ◽  
Daniel Guttentag ◽  
Ulrike Gretzel ◽  
Lan Yao ◽  
Jym Morton
Keyword(s):  
Dynamic Pricing ◽  
Design Methodology ◽  
Sharing Economy ◽  
Host Factors ◽  
Pricing Strategies ◽  
High Demand ◽  
Content Type ◽  
Multiple Markets ◽  
Hotel Managers ◽  
Practical Implications

Purpose The purpose of this paper is to provide a comprehensive analysis of dynamic pricing by Airbnb hosts. Design/methodology/approach This study uses attribute and sales information from 39,837 Airbnb listings and hotel data from 1,025 hotels across five markets to test different hypotheses which explore the extent to which Airbnb hosts use dynamic pricing and how their pricing strategies compare to those of hotels. Findings Airbnb is a unique and complex platform in terms of dynamic pricing where hosts make limited use of dynamic pricing strategies, especially as compared to hotels. Notwithstanding their limited use, hosts who own listings in high-demand leisure markets, manage entire places, manage more listings and have more experience vary prices the most. Practical implications This study identified a great need for Airbnb to encourage dynamic pricing among its hosts, but also warned of the potential perils of dynamic pricing in the sharing economy context. The findings also demonstrated challenges for hotel managers interested in actionable information related to Airbnb as a competitor. Originality/value This is the first Airbnb study to use a comprehensive set of data over a continuous period in multiple markets to look at a number of listing and host factors and determine their relation with dynamic pricing strategies.

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