Optimal pricing decision of composite service offered by network providers in E-commerce environment

2021 ◽  
Author(s):  
Zheng Liu ◽  
Hangxin Guo ◽  
Yuanjun Zhao ◽  
Bin Hu ◽  
Xiaodong Ji ◽  
...  
Keyword(s):  
Optimal Pricing ◽  
Composite Service ◽  
Pricing Decision

Pricing insurance policies with offsetting relationship

2021 ◽  
pp. 1-27
Author(s):  
Hanbali Hamza
Keyword(s):  
Insurance Market ◽  
Optimal Pricing ◽  
Price Discounts ◽  
Insurance Policies ◽  
Life Data ◽  
Pricing Decision ◽  
Pricing Process ◽  
Pairwise Correlations ◽  
Number Of Customers ◽  
The Relationship

Abstract This paper investigates the benefits of incorporating diversification effects into the pricing process of insurance policies from two different business lines. The paper shows that, for the same risk reduction, insurers pricing policies jointly can have a competitive advantage over those pricing them separately. However, the choice of competitiveness constrains the underwriting flexibility of joint pricers. The paper goes a step further by modelling explicitly the relationship between premiums and the number of customers in each line. Using the total collected premiums as a criterion to compare the competing strategies, the paper provides conditions for the optimal pricing decision based on policyholders’ sensitivity to price discounts. The results are illustrated for a portfolio of annuities and assurances. Further, using non-life data from the Brazilian insurance market, an empirical exploration shows that most pairs satisfy the condition for being priced jointly, even when pairwise correlations are high.

scholarly journals A Theory Approach towards Tradable Rail Freight Option

2021 ◽  
Vol 2021 ◽  
pp. 1-11
Author(s):  
Jingwei Guo ◽  
Lutian Li ◽  
Ji Zhang ◽  
Qi Shen ◽  
Zhongqi Xie ◽  
...  
Keyword(s):  
Stochastic Approach ◽  
Significant Feature ◽  
Optimal Pricing ◽  
Theory Approach ◽  
Railway Transportation ◽  
Rail Freight ◽  
Railway Freight ◽  
Pricing Decision ◽  
Fierce Competition ◽  
Freight Pricing

For railway freight pricing, this paper proposes a new tradable rail freight option (RFO). A multiphase trigeminal tree pricing model is established to analyze the optimal pricing decision of RFO. The main parameters of the model are identified theoretically through nonparametric Ito stochastic approach. The paper expands the theory of railway freight pricing. The aim of this paper is to construct the railway freight option theory to help railway transportation enterprise cope with fierce competition and challenge from other modes of transportation in China. The most significant feature of this method is its simplicity in analyzing the optimal pricing decision using only the algebraic category and Ito’s lemma.

scholarly journals The Pricing Decision and Channel Choice of Upgraded Products in the Presence of Strategic Consumers

2021 ◽  
Vol 2021 ◽  
pp. 1-10
Author(s):  
Lingzhi Shao
Keyword(s):  
Dynamic Game ◽  
Optimal Pricing ◽  
Strategic Consumers ◽  
Channel Choice ◽  
Pricing Decisions ◽  
Dual Channel ◽  
Pricing Decision

Many dual-channel suppliers need to make appropriate strategies for their upgraded products in the presence of strategic consumers. This paper develops a two-period dynamic game framework to explore the optimal pricing and upgrade the channel choice when the supplier introduces new upgraded products to a market populated by strategic consumers. The results show that, under any upgrade channel choice, the strategic consumers’ behavior has impacts on supplier and retailer’s pricing decisions and reduces their profit. The supplier could choose appropriate upgrade channel to improve his performance according to the consumers’ patience and innovation level of upgrade products. The supplier should choose pure offline channel to upgrade products when the innovation level of upgraded product B is relatively small. With the sufficiently high innovation level, the supplier should adopt pure offline channel to upgrade products when consumers’ patience is low and uses dual-channel upgrade strategy when the patience is high enough.

scholarly journals Optimal Pricing Decision of Fashion Apparel considering Experiential Service and Design Enhancement

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-11 ◽  
Author(s):  
Qi Xu ◽  
Lili Zhou ◽  
Qi Chen
Keyword(s):  
Substitution Effects ◽  
Optimal Pricing ◽  
Selling Price ◽  
Market Demand ◽  
Complementarity Effect ◽  
Deterioration Rate ◽  
Pricing Decision ◽  
Proposed Model ◽  
Total Profit ◽  
Fashion Apparel

Fashionable clothing is susceptible to seasonality, fashion popularity, and other factors. The decline in the fashion level for fashion apparel will cause its market value to continuously decrease, reducing market demand and creating a backlog of apparel inventory. Under such a circumstance, the apparel retailer chooses to maintain the fashion of the goods by providing experiential services or enhancing product design capabilities. This paper focuses on the discussions on the issue of whether experience service and design efforts are complements or substitutes. The major objective is to simultaneously determine the experience service investment and the optimal selling price to maximize the total profit. First, a Cobb–Douglas utility function is used to derive a demand function that depends on the price and fashion level. Four kinds of inventory models are further established to obtain optimal pricing and inventory ordering strategies. Second, an algorithm is presented to search for the optimal solutions of the proposed model. Finally, a numerical example is provided to perform a sensitivity analysis of the key parameters and to discuss specific managerial insights. The numerical examples show that both the experiential services and the enhanced fashion design can effectively reduce the apparel company’s inventory and increase profits. When the two strategies are combined, they will produce complementary or substitution effects, which depend on the deterioration rate of the fashion level of the apparel. If the deterioration rate is less than a critical value, the interaction of experiential services and design investment has a complementarity effect.

scholarly journals Stackelberg Game Model of Railway Freight Pricing Based on Option Theory

2020 ◽  
Vol 2020 ◽  
pp. 1-11
Author(s):  
Jingwei Guo ◽  
Zhongqi Xie ◽  
Qinglin Li
Keyword(s):  
Stackelberg Game ◽  
Chinese Economy ◽  
Optimal Decision ◽  
Optimal Pricing ◽  
Theoretic Approach ◽  
Railway Transportation ◽  
Railway Freight ◽  
Pricing Decision ◽  
Option Theory ◽  
Freight Pricing

In recent years, although rail transport has contributed significantly to the productivity of the Chinese economy, it has also been faced with the fierce competition and challenge from other modes of transportation, and therefore, freight-pricing issue has received more attention by researchers. In this paper, the rail freight option (RFO) based on option theory is proposed to study the optimal pricing decision of the railway transportation enterprise and contract customers’ optimal purchase decisions. To obtain an effective RFO contract, the railway freight contract transaction process is first analyzed. Then, the theoretical framework for the RFO contract trading is put forward in the railway freight market. Next, a two-stage Stackelberg game theoretic approach is presented based on the principle of utility maximization to achieve the optimal decision of RFO contract. Subsequently, the reverse reasoning method in dynamic programming is used to solve the optimal combination decision of the contract customer. Finally, the optimal pricing decision of RFO is discussed using Kuhn–Tucker conditions and Lagrangian function. The result shows that the railway transportation enterprise should pay more attention to the option strike price w1 in terms of maximizing system utility and achieving Pareto optimal.

Optimal Pricing for Mobile Video Streaming in 3G Wireless Packet Networks

2012 ◽  
Vol 2 (2) ◽  
pp. 134-136
Author(s):  
Ch. Divya Ch. Divya ◽  
◽  
Dr. P. Govardhan Dr. P. Govardhan
Keyword(s):  
Video Streaming ◽  
Optimal Pricing ◽  
Packet Networks ◽  
Mobile Video ◽  
Mobile Video Streaming ◽  
Wireless Packet
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