scholarly journals A joint dynamic pricing and production model with asymmetric reference price effect

2019 ◽  
Vol 15 (2) ◽  
pp. 667-688 ◽  
Author(s):  
Shichen Zhang ◽  
◽  
Jianxiong Zhang ◽  
Jiang Shen ◽  
Wansheng Tang
Keyword(s):  
Dynamic Pricing ◽  
Reference Price ◽  
Production Model ◽  
Price Effect

Dynamic pricing in the presence of competition with reference price effect

2014 ◽  
Vol 8 ◽  
pp. 3693-3708 ◽  
Author(s):  
S. Kachani ◽  
Y. Oumanar ◽  
N. Raissi
Keyword(s):  
Dynamic Pricing ◽  
Reference Price ◽  
Price Effect

scholarly journals Dynamic Pricing of Fashion-Like Multiproducts with Customers’ Reference Effect and Limited Memory

2014 ◽  
Vol 2014 ◽  
pp. 1-10 ◽  
Author(s):  
Mengqi Liu ◽  
Wenjie Bi ◽  
Xiaohong Chen ◽  
Guo Li
Keyword(s):  
Steady State ◽  
Dynamic Pricing ◽  
Reference Price ◽  
Memory Window ◽  
Optimal Pricing ◽  
Price Effect ◽  
Pricing Policy ◽  
Limited Memory ◽  
Bounded Memory ◽  
State Price

We study a fashion retailer’s dynamic pricing problem in which consumers present reference effect and memory window. Based on the theory of Baucells et al. (2011), we propose a new reference-price updating mechanism in fashion and textile (FT) industry where consumers have a bounded memory window and anchor on the first and most recent price in any memory window. Moreover, we study the impacts of this mechanism on optimal pricing policy for a retailer selling multiple fashion-like products and analyze optimal price’s steady state, monotonicity, and convergence. For two-product case, we find that, for otherwise identical products, the steady-state price of a core product is lower than that of a noncore product. We compute the retailer’s loss of revenue if he incorrectly assumes the reference-price effect to be at the product level and prices the products individually. Further, as illustrated with numerical results, our model is a flexible way to make pricing strategy if the retailer can anticipate the length of consumers’ memory window.

Dynamic Pricing with Stochastic Reference Price Effect

2018 ◽  
Vol 7 (1) ◽  
pp. 107-125 ◽  
Author(s):  
Xin Chen ◽  
Zhen-Yu Hu ◽  
Yu-Han Zhang
Keyword(s):  
Dynamic Pricing ◽  
Reference Price ◽  
Price Effect

Efficient Algorithms for the Dynamic Pricing Problem with Reference Price Effect

2017 ◽  
Vol 63 (12) ◽  
pp. 4389-4408 ◽  
Author(s):  
Xin Chen ◽  
Peng Hu ◽  
Zhenyu Hu
Keyword(s):  
Dynamic Pricing ◽  
Reference Price ◽  
Efficient Algorithms ◽  
Price Effect
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