scholarly journals Optimal Pricing and Capacity Under Well-Defined and Well-Known Deterministic Demand Fluctuations

2019 ◽  
Vol 11 (2) ◽  
pp. 15
Author(s):  
Tchai Tavor ◽  
Limor Dina Gonen ◽  
Uriel Spiegel
Keyword(s):  
Profit Maximization ◽  
Optimal Pricing ◽  
Peak Period ◽  
For Profit ◽  
Pricing Policies ◽  
Deterministic Demand ◽  
Optimal Capacity ◽  
Demand Fluctuations ◽  
Do So

Fluctuations in demand require diverse considerations with respect to planned capacity. At peak periods, decreased capacity may result in supply shortages and   thus in lower revenues and unachievable profits.  In contrast, smaller capacity at off-peak periods reduces the substantial costs of large and unutilized capacity.   The questions to be addressed ask (i) what the optimal pricing policies are at peak and off-peak periods; (ii) what the optimal capacity is for profit maximization of the supplier; and furthermore (iii) how the shifting of demands from peak to off-peak periods may reduce fluctuation and impact profits. The present paper develops a model that compares two cases. In Case 1 it is not possible to transfer partial demand from a peak period to an off-peak period, while in Case 2 it is possible to do so. The comparison between the cases illustrates various results, some of which are less intuitive than others. For instance, a larger gap between the peak and off-peak periods leads to a larger optimal capacity in Case 1 than in Case 2. However, a smaller gap presents a different picture. When there is less willingness to switch demand between the periods, the capacity of Case 2 is larger than that of Case 1. 

Measuring the effects of tourists’ relative willingness to spend and third-degree price discrimination on inbound tourism expenditure differentials

2021 ◽  
pp. 135481662110300
Author(s):  
Usamah F Alfarhan ◽  
Khaldoon Nusair ◽  
Hamed Al-Azri ◽  
Saeed Al-Muharrami ◽  
Nan Hua
Keyword(s):  
Price Discrimination ◽  
Profit Maximization ◽  
Tourism Industry ◽  
Theoretical Argument ◽  
Total Expenditure ◽  
Conditional Quantile ◽  
For Profit ◽  
Inbound Tourism ◽  
Tourism Expenditure ◽  
Quantile Estimates

Tourism expenditures are determined by a set of antecedents that reflect tourists’ willingness and ability to spend, and de facto incremental monetary outlays at which willingness and ability is transformed into total expenditures. Based on the neoclassical theoretical argument of utility-constrained expenditure minimization, we extend the current literature by applying a sustainability-based segmentation criterion, namely, the Legatum Prosperity IndexTM to the decomposition of a total expenditure differential into tourists’ relative willingness to spend and an upper bound of third-degree price discrimination, using mean-level and conditional quantile estimates. Our results indicate that understanding the price–quantity composition of international inbound tourism expenditure differentials assists agents in the tourism industry in their quest for profit maximization.

scholarly journals Impact of emission trading and renewable energy support scheme on the optimality of generator side bidding

2020 ◽  
Vol 167 ◽  
pp. 05008 ◽  
Author(s):  
A Arya ◽  
SPS Mathur ◽  
M Dubey
Keyword(s):  
Renewable Energy ◽  
Ghg Emissions ◽  
Profit Maximization ◽  
Emission Trading ◽  
Pso Algorithm ◽  
Optimization Method ◽  
Developed Countries ◽  
Test System ◽  
For Profit ◽  
System Operator

As a major Green House Gases (GHG) producer, CO2 in particular, the electricity industry’s emissions have turned in to a matter of immense concern in many countries, especially in India. India’s economy and fast economic development has attracts the attention of the world. Emission trading schemes (ETS) and renewable energy support schemes (RESS) are implemented by the various developed countries to alleviate the affect of GHG emissions. In this paper, an optimization based market simulation approach is proposed with the consideration of emission trading schemes and renewable support schemes. To simulate the bidding strategy and for profit maximization, a particle swarm optimization (PSO) algorithm is used. As above problem is a multi-objective optimization problem, Where, in the first level each Genco submit the bid to the independent system operator and in the next level a optimization method is used for the determination of optimal bidding with the implementation of emission trading schemes and renewable support schemes. It is assumed that each generator should submit bid as a price taker’s in sealed auction based on pay-as-bid market clearing price mechanism. The practicability of proposed optimization method is checked by an IEEE-30 bus test system consists of six suppliers.

Ride service outsourcing for profit maximization

2009 ◽  
Vol 45 (1) ◽  
pp. 138-148 ◽  
Author(s):  
Yihua Li ◽  
Xiubin Wang ◽  
Teresa M. Adams
Keyword(s):  
Profit Maximization ◽  
Service Outsourcing ◽  
For Profit

scholarly journals Overcoming the Problem With Solving Business Problems: Using Theory Differently to Rejuvenate the Case Method for Turbulent Times

2020 ◽  
Author(s):  
Todd Bridgman ◽  
C McLaughlin ◽  
Stephen Cummings
Keyword(s):  
Management Education ◽  
Profit Maximization ◽  
Case Method ◽  
Core Element ◽  
Capitalist System ◽  
For Profit ◽  
Not For Profit ◽  
Turbulent Times ◽  
Business As Usual ◽  
Critical Questioning

© 2018, The Author(s) 2018. A questioning of the neoliberal consensus in the global economic order is creating turbulence in Western democracies. Long regarded as the only viable capitalist model, neoliberalism is now subjected to increasing scrutiny. Management education that has been aligned to a neoliberal worldview must now respond to this shifting landscape in order to retain its legitimacy. One core element of management education undergoing revision as a result is the case method of teaching. The case method’s traditionally narrow focus on training students to solve business problems is increasingly problematic in an environment where the structure of the capitalist system in which firms operate is now a topic of debate. To address this, we argue for a reconceptualization of the case method’s relationship with theory. This has conventionally taken two forms: a hostility to any inclusion of theory in the analytical process and an approach that uses theory as an instrument for profit maximization. We propose an alternative third approach that encourages students to engage in a critical questioning of business-as-usual capitalism from the perspective of multiple stakeholders, including managers, employees, unions, not-for-profit organizations, government, and the natural environment.

scholarly journals The role of complementarity of goods in a mixed bundling strategy

2020 ◽  
Vol 9 (1) ◽  
pp. 31
Author(s):  
Carmen D. Álvarez-Albelo
Keyword(s):  
Optimal Strategy ◽  
Optimal Pricing ◽  
Mixed Bundling ◽  
Complementary Goods ◽  
Do So

This paper studies optimal pricing when a monopolist firm produces two complementary goods and may undertake a bundling strategy. To do so, a modified version of Yan and Bandyopadhyay’s (2011) framework is used, in which the efficacy of the bundling strategy depends positively on the degree of complementarity of goods. Two main results are obtained. First, mixed bundling turns out to be the optimal strategy for the firm, since it yields higher profits than pure unbundling and pure bundling. Second, sales and profits from the bundling (unbundling) strategy increase (decrease) as the products become more complementary, which entails an empirically sensible behavior.

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