Dynamic pricing when customers strategically time their purchase : Asymptotic optimality of a two-price policy

@inproceedings{Bansal2008DynamicPW,
  title={Dynamic pricing when customers strategically time their purchase : Asymptotic optimality of a two-price policy},
  author={Matulya Bansal and Costis Maglaras},
  year={2008}
}
We study the dynamic pricing problem of a monopolist firm in presence of strategic customers that differ in their valuations and risk-preferences. We show that this problem can be formulated as a static mechanism design problem, which is more amenable to analysis. We highlight several structural properties of the optimal solution, and solve the problem for several special cases. Focusing on settings with low risk-aversion, we show through an asymptotic analysis that the “two-price point… CONTINUE READING

From This Paper

Figures, tables, and topics from this paper.
4 Citations
14 References
Similar Papers

References

Publications referenced by this paper.
Showing 1-10 of 14 references

Inter-temporal pricing with strategic customer behavior

  • X. Su
  • Management Science
  • 2007
Highly Influential
6 Excerpts

Purchasing, Pricing, and Quick Response in the Presence of Strategic Customers

  • G. P. Cachon, R. Swinney
  • Working Paper,
  • 2007
Highly Influential
4 Excerpts

Market segmentation, self-selection and product-line design

  • K. S. Moorthy
  • Marketing Science
  • 1984
2 Excerpts

Similar Papers

Loading similar papers…