scholarly journals Dynamic Pricing of Ride-Hailing Platforms considering Service Quality and Supply Capacity under Demand Fluctuation

2020 ◽  
Vol 2020 ◽  
pp. 1-26
Author(s):  
Zhongmiao Sun ◽  
Qi Xu ◽  
Baoli Shi
Keyword(s):  
Service Quality ◽  
Dynamic Pricing ◽  
Dynamic Models ◽  
Supply And Demand ◽  
Market Demand ◽  
Pricing Decisions ◽  
Dynamic Price ◽  
Total Profit ◽  
Optimal Dynamic ◽  
Supply Capacity

Increasing attention is being paid to the pricing decisions of ride-hailing platforms. These platforms usually face market demand fluctuation and reflect supply and demand imbalances. Unlike existing studies, we focus on the optimal dynamic pricing of the platforms under imbalance between supply and demand caused by market fluctuation. Dynamic models are constructed based on the state change of supply and demand by using optimal control theory, with the aim of maximizing the platform’s total profit. We obtain the optimal trajectories of price, supply, and demand under three ride demand situations. The effects of some key parameters on pricing decisions, such as coefficient of demand fluctuation, service quality, and fixed commission rate, are examined. We find the optimal dynamic price can improve the match of supply-demand in ride-hailing market and enhance the revenue of platform.

scholarly journals An Integration Mechanism between Demand and Supply Side Management of Electricity Markets

Energies ◽  
2018 ◽  
Vol 11 (12) ◽  
pp. 3314 ◽  
Author(s):  
Zixu Liu ◽  
Xiaojun Zeng ◽  
Fanlin Meng
Keyword(s):  
Electricity Market ◽  
Dynamic Pricing ◽  
Supply And Demand ◽  
Coordination Mechanism ◽  
Supply Side ◽  
Market Demand ◽  
Demand Side ◽  
Market Clearing ◽  
Demand And Supply ◽  
Market Clearing Price

One of the main challenges in the emerging smart grid is to jointly consider the demand and supply, which is also reflected in the wholesale market (supply side) and the retail market (demand side). When integrating the demand and supply side into one framework, the mechanism for determining the market clearing price has been changed. This is due to the demand variations in the demand side in response to the market clearing price and the change of generation costs in the supply side from the demand variation. In order to find the best balance between the supply and demand under the demand response management scheme, this paper proposes a new integrated supply and demand coordination mechanism for the electricity market and smart pricing methods for generator and retailers. Another important contribution of this paper is to develop an efficient algorithm to find the match equilibrium between the demand and supply sides in the new proposed mechanism. Experimental results demonstrate that the new mechanism can effectively handle unpredictable demand under dynamic retail pricing and support the ISO to dispatch the generation economically. It can also help in achieving the goals of dynamic pricing such as maximizing the profits for retailers.

Operator- and user-based rebalancing strategy for bike-sharing systems

2021 ◽  
pp. 1-12
Author(s):  
Peng-Sheng You ◽  
Yi-Chih Hsieh
Keyword(s):  
Dynamic Pricing ◽  
Programming Model ◽  
Supply And Demand ◽  
Planning Horizon ◽  
Sensitivity Analyses ◽  
Mixed Integer ◽  
Time Problem ◽  
Bike Sharing ◽  
Total Profit ◽  
The Impact

Leveraging their networks, bike rental companies usually provide customers with services for renting and returning bikes at different bike stations. Over time, however, rental networks may encounter problems with unbalanced bike stocks. The potential imbalance between supply and demand at bike stations may result in lost sales for stations with relatively high demand and underutilization for stations with relatively low demand. This paper proposed a constrained mixed-integer programming model that uses operator-based redistribution and user-based price approach to rebalance bikes across bike stations. This paper aims to maximize total profit over a planning horizon by determining operator-based bike transfers and dynamic pricing. The proposed model is a non-deterministic polynomial-time problem, and thus, a heuristic was developed based on linear programming and evolutionary computation to perform model solving. Numerical experiments reveal that the proposed method performed better than Lingo, a well-known commercial software. Sensitivity analyses were also performed to investigate the impact of changes in system parameters on computational results.

scholarly journals Dynamic pricing with demand disaggregation for hotel revenue management

2021 ◽  
Author(s):  
Andrei M. Bandalouski ◽  
Natalja G. Egorova ◽  
Mikhail Y. Kovalyov ◽  
Erwin Pesch ◽  
S. Armagan Tarim
Keyword(s):  
Dynamic Pricing ◽  
Programming Model ◽  
Computer Experiments ◽  
Price Policy ◽  
Linear Constraints ◽  
Economic Consequences ◽  
Elastic Model ◽  
Computationally Efficient ◽  
Data Set ◽  
Dynamic Price

AbstractIn this paper we present a novel approach to the dynamic pricing problem for hotel businesses. It includes disaggregation of the demand into several categories, forecasting, elastic demand simulation, and a mathematical programming model with concave quadratic objective function and linear constraints for dynamic price optimization. The approach is computationally efficient and easy to implement. In computer experiments with a hotel data set, the hotel revenue is increased by about 6% on average in comparison with the actual revenue gained in a past period, where the fixed price policy was employed, subject to an assumption that the demand can deviate from the suggested elastic model. The approach and the developed software can be a useful tool for small hotels recovering from the economic consequences of the COVID-19 pandemic.

Optimal dynamic pricing for an electricity retailer in the price-responsive environment of smart grid

2021 ◽  
Vol 130 ◽  
pp. 107004
Author(s):  
Hossein Taherian ◽  
Mohammad Reza Aghaebrahimi ◽  
Luis Baringo ◽  
Saeid Reza Goldani
Keyword(s):  
Smart Grid ◽  
Dynamic Pricing ◽  
Optimal Dynamic

Existence and uniqueness of optimal dynamic pricing and advertising controls without concavity

2018 ◽  
Vol 46 (2) ◽  
pp. 199-204 ◽  
Author(s):  
Bertrand Crettez ◽  
Naila Hayek ◽  
Georges Zaccour
Keyword(s):  
Dynamic Pricing ◽  
Existence And Uniqueness ◽  
Optimal Dynamic

scholarly journals Dynamic Pricing Decisions and Seller-Buyer Interactions under Capacity Constraints

Games ◽  
2018 ◽  
Vol 9 (1) ◽  
pp. 10 ◽  
Author(s):  
Vincent Mak ◽  
Amnon Rapoport ◽  
Eyran Gisches
Keyword(s):  
Dynamic Pricing ◽  
Capacity Constraints ◽  
Pricing Decisions

scholarly journals METHODS FOR FUZZY DEMAND ASSESSMENT FOR IT SPECIALTIES

2019 ◽  
Vol 4 ◽  
pp. 23-33 ◽  
Author(s):  
Masuma Mammadovа
Keyword(s):  
Labor Market ◽  
Information Technologies ◽  
Rapid Development ◽  
Supply And Demand ◽  
Complete Information ◽  
Mathematical Tool ◽  
Market Demand ◽  
Technological Transformation ◽  
The One ◽  
Support Methods

The rapid development of information technologies and their penetration into various spheres of human activity cause a sharply increased demand for IT specialists, in many countries of the world far exceeding the supply on them. High rates of technological transformation contribute to the diversification of the IT segment of the labor market, on the one hand, stimulate the disappearance of some and the emergence of new IT specialties, on the other. This creates a discrepancy between the structure of IT-related education and the labor market demand for IT specialists of the required profile and determines the relevance of developing methods for assessing the demand for IT specialties. This article is devoted to the study and solution of the problem of identifying the demand for IT specialties in the absence of accurate and complete information about the situation in the IT market segment. For the assessment of IT specialties and their ranking by the degree of demand in the labor market, the tasks of making individual and group decisions in the context of fuzzy initial information are formulated and solved. The methodological basis of the tasks posed is multi-criteria decision support methods based on fuzzy relations of expert preferences. The proposed approach as a mathematical tool for minimizing the structural imbalance of supply and demand for IT specialties is one of the components of the system of intellectual management of the labor market of IT specialists. The latter is designed to support the adoption of scientifically based management decisions to eliminate the mismatch of supply and demand in the IT segment of the labor market in professional, quantitative and qualitative sections.

scholarly journals Dynamic Pricing Policy Using Preservation Technology with Stock and Price Sensitive Demand

2020 ◽  
Vol 26 (3) ◽  
pp. 266-274
Author(s):  
Uttam Kumar Khedlekar ◽  
Priyanka Singh ◽  
Neelesh Gupta
Keyword(s):  
Dynamic Pricing ◽  
Policy Decision ◽  
Pricing Strategy ◽  
Selling Price ◽  
Market Demand ◽  
Pricing Policy ◽  
Preservation Technology ◽  
Proposed Model ◽  
Stock Policy ◽  
Dependent Demand

This paper aims to develop a dynamic pricing policy for deteriorating items with price and stock dependent demand. In declining market demand of items decreases with respect to time and also after a duration items get outdated. In this situation it needs a pricing policy to sale the items before end season. The proposed dynamic pricing policy is applicable for a limited period to clease the stock. Policy decision regarding the selling price could aggressively attracts the costumers. Objectives are to maximize the prot/revenue, pricing strategy and economic order level for such a stock dependent and price sensitive items. We are giving numerical example and simulation to illustrate the proposed model.

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