Dynamic Pricing for Nonperishable Products with Demand Learning

  title={Dynamic Pricing for Nonperishable Products with Demand Learning},
  author={Victor F. Araman and Ren{\'e} Caldentey},
  journal={Operations Research},
A retailer is endowed with a finite inventory of a nonperishable product. Demand for this product is driven by a pricesensitive Poisson process that depends on an unknown parameter that is a proxy for the market size. The retailer has a prior belief on the value of this parameter that he updates as time and available information (prices and sales) evolve. The retailer’s objective is to maximize the discounted long-term average profits of his operation using dynamic pricing policies. We consider… CONTINUE READING
Highly Influential
This paper has highly influenced 19 other papers. REVIEW HIGHLY INFLUENTIAL CITATIONS
Highly Cited
This paper has 108 citations. REVIEW CITATIONS


Publications citing this paper.
Showing 1-10 of 63 extracted citations

108 Citations

Citations per Year
Semantic Scholar estimates that this publication has 108 citations based on the available data.

See our FAQ for additional information.


Publications referenced by this paper.
Showing 1-10 of 30 references

Dynamic pricing and inventory control: The value of demand leraning

  • X. Xu, W. J. Hopp.
  • Department of Industrial Engineering…
  • 2005

Dynamic pricing and learning over short time horizons

  • A. X. Carvalho, M. L. Puterman.
  • Working Paper, Statistisc Department, University…
  • 2004

Nonparametric strategies for dynamic pricing in e-commerce

  • E. Cope
  • Working Paper, The Sauder School of Business…
  • 2004

The theory and practice of revenue management

  • K. Talluri, G. van Ryzin.
  • Kluwer Academic Press.
  • 2004

Similar Papers

Loading similar papers…