A birth–death model of advertising and pricing

1979 ◽  
Vol 11 (01) ◽  
pp. 134-152
Author(s):  
S. Christian Albright ◽  
Wayne Winston
Keyword(s):  
Stochastic Game ◽  
Optimal Level ◽  
Competitive Environment ◽  
Equilibrium Strategy ◽  
Pricing Strategies ◽  
Current Position ◽  
Market Position ◽  
Primary Focus ◽  
Zero Sum ◽  
Over Time

This paper employs the methods currently used to solve many queuing control models in order to investigate the behavior of a firm's optimal advertising and pricing strategies over time. Given that a firm's market position expands or deteriorates in a probabilistic way which depends upon the current position, the rate of advertising, and the price the firm charges, we present conditions which ensure that the optimal level of advertising is a monotonic function of the firm's market position, and we discuss the economic meaning of these conditions. Furthermore, although the primary focus is upon a non-competitive environment, we develop the above model as a non-zero sum, two-person stochastic game and show that an equilibrium strategy exists which is simple to compute.

A birth–death model of advertising and pricing

1979 ◽  
Vol 11 (1) ◽  
pp. 134-152 ◽  
Author(s):  
S. Christian Albright ◽  
Wayne Winston
Keyword(s):  
Stochastic Game ◽  
Optimal Level ◽  
Competitive Environment ◽  
Equilibrium Strategy ◽  
Pricing Strategies ◽  
Current Position ◽  
Market Position ◽  
Primary Focus ◽  
Zero Sum ◽  
Over Time

This paper employs the methods currently used to solve many queuing control models in order to investigate the behavior of a firm's optimal advertising and pricing strategies over time. Given that a firm's market position expands or deteriorates in a probabilistic way which depends upon the current position, the rate of advertising, and the price the firm charges, we present conditions which ensure that the optimal level of advertising is a monotonic function of the firm's market position, and we discuss the economic meaning of these conditions. Furthermore, although the primary focus is upon a non-competitive environment, we develop the above model as a non-zero sum, two-person stochastic game and show that an equilibrium strategy exists which is simple to compute.

Without the Power to Drink or Contract

2020 ◽  
Vol 24 (1) ◽  
pp. 26-48
Author(s):  
Warren Swain
Keyword(s):  
Alcohol Consumption ◽  
Social Activity ◽  
Individual Responsibility ◽  
Roman Law ◽  
Current Position ◽  
Modern Times ◽  
The Will ◽  
The Subject ◽  
The Law ◽  
Over Time

Intoxication as a ground to set aside a contract is not something that has proved to be easy for the law to regulate. This is perhaps not very surprising. Intoxication is a temporary condition of varying degrees of magnitude. Its presence does however raise questions of contractual autonomy and individual responsibility. Alcohol consumption is a common social activity and perceptions of intoxication and especially alcoholism have changed over time. Roman law is surprisingly quiet on the subject. In modern times the rules about intoxicated contracting in Scottish and English law is very similar. Rather more interestingly the law in these two jurisdictions has reached the current position in slightly different ways. This history can be traced through English Equity, the works of the Scottish Institutional writers, the rise of the Will Theory, and all leavened with a dose of judicial pragmatism.

scholarly journals Rankings Season is Here

2015 ◽  
Author(s):  
Philip Altbach
Keyword(s):  
Higher Education ◽  
Research Productivity ◽  
English Speaking ◽  
Zero Sum ◽  
Changes Over Time ◽  
Over Time

The major international rankings of higher education have appeared in recent months. The ranking is an inevitable result of the massification and commercialization of higher education worldwide. Ranking presumes a zero-sum game, but in reality, improvement is taking place everywhere. The current rankings are largely measured by research productivity, and they are advantageous for major English-speaking countries. Each ranking use different measures, and also changes over time. The user must be aware of the uses and problems of rankings.

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.

Examining the Integration of Virtual and Physical Platforms From Luxury Brand Managers' Perspectives

2021 ◽  
pp. 44-61
Author(s):  
Paola Peretti ◽  
Valentina Chiaudano ◽  
Mohanbir Sawhney
Keyword(s):  
Longitudinal Study ◽  
Business Model ◽  
Digital Transformation ◽  
The Internet ◽  
Luxury Brand ◽  
Online Technologies ◽  
A Priority ◽  
Primary Focus ◽  
Luxury Market ◽  
Over Time

“The internet dilemma” was the concept used to describe luxury brand companies' initial reluctance to integrate online technologies into their business model. However, over time, luxury brand companies have understood that moving towards digital transformation is the only way to survive on the market and appeal to the new luxury brand consumers. In a few years, digitalisation has become a priority for all luxury brand companies that started to integrate digital and physical platforms to engage consumers through all touchpoints of their shopping journey. In light of the topic's relevance and considering the primary focus of research on consumers, this chapter aims to deepen the digitalisation phenomenon in the luxury market involving the little-explored luxury brand managers' perspective. The authors conducted a longitudinal study to compare the main changes in integrating digital and physical platforms from the managers' perspective between 2014 and 2020. In this endeavour, they also considered how the COVID-19 pandemic had affected luxury brand companies' digitalisation.

No-Trade in the Laboratory

2011 ◽  
Vol 11 (1) ◽  
Author(s):  
Marco Angrisani ◽  
Antonio Guarino ◽  
Steffen Huck ◽  
Nathan C Larson
Keyword(s):  
Financial Markets ◽  
Private Information ◽  
The Other ◽  
Gains From Trade ◽  
Experimental Markets ◽  
Asset Value ◽  
Market Feedback ◽  
Experimental Treatments ◽  
Zero Sum ◽  
Over Time

We construct laboratory financial markets in which subjects can trade an asset whose value is unknown. Subjects receive private clues about the asset value and then set bid and ask prices at which they are willing to buy or to sell from the other participants. In some of our markets (experimental treatments), there are gains from trade, while in others there are no gains: trade is zero sum. Celebrated no-trade theorems state that differences in private information alone cannot explain trade in the zero sum case. We study whether purely informational trade is eliminated in our experimental markets with no gains. The comparison of our results for gains and no-gains treatments shows that subjects fail to reach the no-trade outcome by pure introspection, but they approach it over time through market feedback and learning. Furthermore, the less noisy the clue-asset relationship is, the closer trade comes to being eliminated entirely.

scholarly journals Ambush frequency should increase over time during optimal predator search for prey

2011 ◽  
Vol 8 (64) ◽  
pp. 1665-1672 ◽  
Author(s):  
Steve Alpern ◽  
Robbert Fokkink ◽  
Marco Timmer ◽  
Jérôme Casas
Keyword(s):  
Square Root ◽  
Search Games ◽  
Search Game ◽  
Physiological Conditions ◽  
Dynamical Nature ◽  
Zero Sum ◽  
Changes Over Time ◽  
Search Modes ◽  
Additional Explanation ◽  
Over Time

We advance and apply the mathematical theory of search games to model the problem faced by a predator searching for prey. Two search modes are available: ambush and cruising search. Some species can adopt either mode, with their choice at a given time traditionally explained in terms of varying habitat and physiological conditions. We present an additional explanation of the observed predator alternation between these search modes, which is based on the dynamical nature of the search game they are playing: the possibility of ambush decreases the propensity of the prey to frequently change locations and thereby renders it more susceptible to the systematic cruising search portion of the strategy. This heuristic explanation is supported by showing that in a new idealized search game where the predator is allowed to ambush or search at any time, and the prey can change locations at intermittent times, optimal predator play requires an alternation (or mixture) over time of ambush and cruise search. Thus, our game is an extension of the well-studied ‘Princess and Monster’ search game. Search games are zero sum games, where the pay-off is the capture time and neither the Searcher nor the Hider knows the location of the other. We are able to determine the optimal mixture of the search modes when the predator uses a mixture which is constant over time, and also to determine how the mode mixture changes over time when dynamic strategies are allowed (the ambush probability increases over time). In particular, we establish the ‘square root law of search predation’: the optimal proportion of active search equals the square root of the fraction of the region that has not yet been explored.

scholarly journals Risk-Averse Suppliers’ Optimal Pricing Strategies in a Two-Stage Supply Chain

2013 ◽  
Vol 2013 ◽  
pp. 1-11 ◽  
Author(s):  
Rui Shen ◽  
Zhiqing Meng ◽  
Xinsheng Xu ◽  
Min Jiang
Keyword(s):  
Supply Chain ◽  
Loss Function ◽  
Wholesale Price ◽  
Competitive Environment ◽  
Optimal Pricing ◽  
Risk Averse ◽  
Pricing Strategies ◽  
Two Stage ◽  
Future Loss

Risk-averse suppliers’ optimal pricing strategies in two-stage supply chains under competitive environment are discussed. The suppliers in this paper focus more on losses as compared to profits, and they care their long-term relationship with their customers. We introduce for the suppliers a loss function, which covers both current loss and future loss. The optimal wholesale price is solved under situations of risk neutral, risk averse, and a combination of minimizing loss and controlling risk, respectively. Besides, some properties of and relations among these optimal wholesale prices are given as well. A numerical example is given to illustrate the performance of the proposed method.

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