Dynamic and Non-uniform Pricing Strategies for Revenue Maximization

Author(s):  
Tanmoy Chakraborty ◽  
Zhiyi Huang ◽  
Sanjeev Khanna
2019 ◽  
Vol 18 (06) ◽  
pp. 1909-1939
Author(s):  
Heng Du ◽  
Tiaojun Xiao

This paper examines pricing strategies for two adaptive retailers competing on two products in the presence of complex consumer behavior, where consumers own heterogeneous product and store valuations and the number of potential consumers is random. Each retailer can choose one from two pricing strategies: the uniform pricing format (offering the same price for two products) or the differentiated pricing format (offering different prices). Utilizing agent-based model (each retailer is modeled as an autonomous agent with the reinforcement learning behavior), we find that: (i) the differentiated pricing format is not always the optimal choice; (ii) when the uncertainty of one product/store valuation is a little larger than that of the rival, both retailers should adopt uniform pricing. Besides, when wholesale price contract is endogenous, we find that supplier’s pricing behavior can change the impact of the fixed cost on the pricing strategy.


2013 ◽  
Vol 42 (6) ◽  
pp. 2424-2451 ◽  
Author(s):  
Tanmoy Chakraborty ◽  
Zhiyi Huang ◽  
Sanjeev Khanna

2006 ◽  
Vol 532-533 ◽  
pp. 941-944
Author(s):  
Xiao Jun Pan ◽  
Hong Min Chen ◽  
Li Xu

We explore the price and welfare effect of price discrimination in a differentiated-goods oligopoly market with network effect and the effect of network effect on the equilibrium price, profit and output. We show that competitive price discrimination and network effect may intensify competition and the price discrimination increases the social welfare under oligopoly market with network effect. If firms differ in which markets they target for aggressive pricing strategy and competitive firm’s reaction is strong, prices in all markets may fall. So both firms agree on the strategies of setting the uniform pricing.


2020 ◽  
Vol 10 (5) ◽  
pp. 1557
Author(s):  
Weijia Feng ◽  
Xiaohui Li

Ultra-dense and highly heterogeneous network (HetNet) deployments make the allocation of limited wireless resources among ubiquitous Internet of Things (IoT) devices an unprecedented challenge in 5G and beyond (B5G) networks. The interactions among mobile users and HetNets remain to be analyzed, where mobile users choose optimal networks to access and the HetNets adopt proper methods for allocating their own network resource. Existing works always need complete information among mobile users and HetNets. However, it is not practical in a realistic situation where important individual information is protected and will not be public to others. This paper proposes a distributed pricing and resource allocation scheme based on a Stackelberg game with incomplete information. The proposed model proves to be more practical by solving the problem that important information of either mobile users or HetNets is difficult to acquire during the resource allocation process. Considering the unknowability of channel gain information, the follower game among users is modeled as an incomplete information game, and channel gain is regarded as the type of each player. Given the pricing strategies of networks, users will adjust their bandwidth requesting strategies to maximize their expected utility. While based on the sub-equilibrium obtained in the follower game, networks will correspondingly update their pricing strategies to be optimal. The existence and uniqueness of Bayesian Nash equilibrium is proved. A probabilistic prediction method realizes the feasibility of the incomplete information game, and a reverse deduction method is utilized to obtain the game equilibrium. Simulation results show the superior performance of the proposed method.


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