Dynamic Pricing Through Data Sampling

@article{Cohen2013DynamicPT,
  title={Dynamic Pricing Through Data Sampling},
  author={Maxime C. Cohen and Ruben Lobel and Georgia Perakis},
  journal={The Wharton School},
  year={2013}
}
We study a dynamic pricing problem, where a firm offers a product to be sold over a fixed time horizon. The firm has a given initial inventory level, but there is uncertainty about the demand for the product in each time period. The objective of the firm is to determine a dynamic pricing strategy that maximizes revenue over the entire selling season. We develop a tractable optimization model that directly uses demand data, therefore creating a practical decision tool. We show numerically that… Expand
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