Dynamic Pricing of Limited Inventories When Customers Negotiate

@article{Kuo2011DynamicPO,
  title={Dynamic Pricing of Limited Inventories When Customers Negotiate},
  author={Chia-Wei Kuo and Hyun-Soo Ahn and G{\"o}ker Aydin},
  journal={Operations Research},
  year={2011},
  volume={59},
  pages={882-897}
}
Although take-it-or-leave-it pricing is the main mode of operation for many retailers, a number of retailers discreetly allow price negotiation when some haggle-prone customers ask for a bargain. At these retailers, the posted price, which itself is subject to dynamic adjustments in response to the pace of sales during the selling season, serves two important roles: (i) it is the take-it-or-leave-it price to many customers who do not bargain, and (ii) it is the price from which haggle-prone… CONTINUE READING
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