CSpace  > 应用数学研究所
Optimal dynamic pricing problem considering patient and impatient customers' purchasing behaviour
Cao, Ping1; Fan, Mengmeng2,3; Liu, Ke2,3
2015-11-17
Source PublicationINTERNATIONAL JOURNAL OF PRODUCTION RESEARCH
ISSN0020-7543
Volume53Issue:22Pages:6719-6735
AbstractWe divide customers into two types according to their purchasing behaviour: one is impatient and the other is patient. An impatient customer will be immediately lost if his reservation price of the product is below the current price, while a patient customer will wait until the price drops below his reservation price and buy one item. The seller's objective is to maximise his expected discounted overall revenue by dynamically pricing. We prove that the optimal pricing policy has a control limit structure, examine the impact of the proportion parameter on the seller's expected discounted overall revenue and show that the limiting behaviour of the optimal pricing policy when there are little patient customers is the same as the optimal static pricing policy. We also show that the seller will make more profit if he partially knows the number of waiting customers by providing subscription service to customers. A set of numerical results illustrates the value of dynamic pricing and information with respect to problem parameters such as the arriving probability and the subscription probability.
Keywordpricing patient customer impatient customer control limit policy value of information
DOI10.1080/00207543.2015.1056320
Language英语
Funding ProjectNational Natural Science Foundation of China[71390334] ; National Natural Science Foundation of China[71401159] ; National Natural Science Foundation of China[11271356] ; Fundamental Research Funds for the Central Universities[WK2040160009]
WOS Research AreaEngineering ; Operations Research & Management Science
WOS SubjectEngineering, Industrial ; Engineering, Manufacturing ; Operations Research & Management Science
WOS IDWOS:000365529700005
PublisherTAYLOR & FRANCIS LTD
Citation statistics
Cited Times:2[WOS]   [WOS Record]     [Related Records in WOS]
Document Type期刊论文
Identifierhttp://ir.amss.ac.cn/handle/2S8OKBNM/21393
Collection应用数学研究所
Affiliation1.Univ Sci & Technol China, Sch Management, Hefei 230026, Peoples R China
2.Chinese Acad Sci, Acad Math & Syst Sci, MADIS, Beijing, Peoples R China
3.Chinese Acad Sci, Acad Math & Syst Sci, Natl Ctr Math & Interdisciplinary Sci, Beijing, Peoples R China
Recommended Citation
GB/T 7714
Cao, Ping,Fan, Mengmeng,Liu, Ke. Optimal dynamic pricing problem considering patient and impatient customers' purchasing behaviour[J]. INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH,2015,53(22):6719-6735.
APA Cao, Ping,Fan, Mengmeng,&Liu, Ke.(2015).Optimal dynamic pricing problem considering patient and impatient customers' purchasing behaviour.INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH,53(22),6719-6735.
MLA Cao, Ping,et al."Optimal dynamic pricing problem considering patient and impatient customers' purchasing behaviour".INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH 53.22(2015):6719-6735.
Files in This Item:
There are no files associated with this item.
Related Services
Recommend this item
Bookmark
Usage statistics
Export to Endnote
Google Scholar
Similar articles in Google Scholar
[Cao, Ping]'s Articles
[Fan, Mengmeng]'s Articles
[Liu, Ke]'s Articles
Baidu academic
Similar articles in Baidu academic
[Cao, Ping]'s Articles
[Fan, Mengmeng]'s Articles
[Liu, Ke]'s Articles
Bing Scholar
Similar articles in Bing Scholar
[Cao, Ping]'s Articles
[Fan, Mengmeng]'s Articles
[Liu, Ke]'s Articles
Terms of Use
No data!
Social Bookmark/Share
All comments (0)
No comment.
 

Items in the repository are protected by copyright, with all rights reserved, unless otherwise indicated.