A Stochastic Dynamic Pricing and Advertising Model Under Risk Aversion

2015 ◽  
Author(s):  
Rainer Schlosser
Keyword(s):  
Risk Aversion ◽  
Dynamic Pricing ◽  
Stochastic Dynamic ◽  
Advertising Model

A stochastic dynamic pricing and advertising model under risk aversion

2015 ◽  
Vol 14 (6) ◽  
pp. 451-468 ◽  
Author(s):  
Rainer Schlosser
Keyword(s):  
Risk Aversion ◽  
Dynamic Pricing ◽  
Stochastic Dynamic ◽  
Advertising Model

scholarly journals Integrating Dynamic Pricing and Inventory Control for Fresh Agriproduct under Multinomial Logit Choice

2018 ◽  
Vol 2018 ◽  
pp. 1-12
Author(s):  
Xiong-zhi Wang ◽  
Wenliang Zhou
Keyword(s):  
Dynamic Pricing ◽  
Programming Model ◽  
Choice Model ◽  
Multinomial Logit ◽  
Linear Ordering ◽  
Stochastic Dynamic ◽  
Inventory Problem ◽  
Numerical Illustration ◽  
Dynamic Stochastic ◽  
Joint Pricing

In this article, we investigate a joint pricing and inventory problem for a retailer selling fresh agriproducts (FAPs) with two-period shelf lifetime in a dynamic stochastic setting, where new and old FAPs are on sale simultaneously. At the beginning of each period the retailer makes ordering decision for new FAP and sets regular and discount price for new and old inventories, respectively. After demand realization, the expired leftover is disposed and unexpired inventory is carried to the next period, continuing selling. Unmet demand of all FAPs is backordered. The objective is to maximize the total expected discount profit over the whole planning horizon. We present a price-dependent, stochastic dynamic programming model taking into account zero lead time, linear ordering costs, inventory holding, and backlogging costs, as well as disposal cost. Considering the influence of the perishability, we integrate a Multinomial Logit (MNL) choice model to describe the consumer behavior on purchasing fresh or nonfresh product. By way of the inverse of the price vector, the original formulation can be transferred to be jointly concave and tractable. Finally we characterize the optimal policy and develop effective methods to solve the problem and conduct a simple numerical illustration.

scholarly journals Risk Aversion Based Inexact Stochastic Dynamic Programming Approach for Water Resources Management Planning under Uncertainty

2019 ◽  
Vol 11 (24) ◽  
pp. 6926 ◽  
Author(s):  
Zhenfang Liu ◽  
Yang Zhou ◽  
Gordon Huang ◽  
Bin Luo
Keyword(s):  
Dynamic Programming ◽  
Water Resources ◽  
Risk Aversion ◽  
Water Resources Management ◽  
Stochastic Dynamic Programming ◽  
Decision Makers ◽  
Programming Approach ◽  
Stochastic Dynamic ◽  
Management Planning ◽  
Resources Management

In this study, a dual interval robust stochastic dynamic programming (DIRSDP) method is developed for planning water resources management systems under uncertainty. As an extension of the existing interval stochastic dynamic programming (ISDP) method, DIRSDP can deal with two-stage stochastic programming (TSP)-based planning problems associated with dynamic features, input uncertainties, and multistage concerns. Compared with other optimization methods dealing with uncertainties, the developed DIRSDP method has advantages in addressing uncertainties with complex presentations and reflecting decision makers’ risk-aversion attitudes within its optimization process. Parameters in the DIRSDP model can be represented as probability distributions as well as single and/or dual intervals. Decision makers’ risk-aversion attitudes can be reflected through restricting the deviation of the recourse costs to a tolerance level. Water-allocation plans can then be developed based on the analysis of tradeoffs between the system benefit and solution robustness. The developed method is applied to a case of water resources management planning. The solutions are reasonable, indicating applicability of the developed methodology.

Dynamic pricing for online hotel demand: The case of resort hotels in Majorca

2019 ◽  
Vol 26 (2) ◽  
pp. 268-283 ◽  
Author(s):  
Aldric Vives ◽  
Marta Jacob
Keyword(s):  
Dynamic Pricing ◽  
Dynamic Models ◽  
Customer Behavior ◽  
Optimal Pricing ◽  
Stochastic Dynamic ◽  
Elastic Demand ◽  
Demand Functions ◽  
Elasticity Of Demand ◽  
Price Optimization ◽  
Resort Hotels

Online customer behavior in terms of price elasticity of demand and the effect of time along the booking horizon are key requirements for the price optimization process that allows hotels to maximize their revenues. In this vein, this study adapts the online transient hotel demand functions to deterministic and stochastic dynamic models—two extended optimal pricing methods existing in the literature—in order to determine the prices that maximize the revenues of two resort hotels located in Majorca. The main findings indicate that (1) seasonality, the number of rooms available, the hotel location, and the tourist profile affect dynamic pricing (DP); (2) the booking horizon limitation leads to larger revenue decreases under elastic demand; (3) higher levels in demand elasticities generally produce lower levels of prices; and (4) the distribution of elasticities across the booking horizon and the natural variability of demand have an impact on DP. Implication for industry revenue managers is that they have to consider the booking horizon duration together with the demand price sensitivity in order to maximize the hotel revenues.

Stochastic dynamic pricing and advertising in isoelastic oligopoly models

2017 ◽  
Vol 259 (3) ◽  
pp. 1144-1155 ◽  
Author(s):  
Rainer Schlosser
Keyword(s):  
Dynamic Pricing ◽  
Stochastic Dynamic

A stochastic dynamic pricing model for the multiclass problems in the airline industry

2015 ◽  
Vol 242 (1) ◽  
pp. 188-200 ◽  
Author(s):  
Daniel F. Otero ◽  
Raha Akhavan-Tabatabaei
Keyword(s):  
Airline Industry ◽  
Dynamic Pricing ◽  
Stochastic Dynamic ◽  
Pricing Model

scholarly journals Stochastic Dynamic Pricing for EV Charging Stations With Renewable Integration and Energy Storage

2018 ◽  
Vol 9 (2) ◽  
pp. 1494-1505 ◽  
Author(s):  
Chao Luo ◽  
Yih-Fang Huang ◽  
Vijay Gupta
Keyword(s):  
Energy Storage ◽  
Dynamic Pricing ◽  
Stochastic Dynamic ◽  
Renewable Integration ◽  
Charging Stations ◽  
Ev Charging

A Joint Dynamic Pricing and Multi-Channel Advertising Model with Stochastic Demand

2021 ◽  
Author(s):  
Rainer Schlosser ◽  
Régis Chenavaz
Keyword(s):  
Dynamic Pricing ◽  
Stochastic Demand ◽  
Advertising Model
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