Optimal dynamic pricing of inventories with stochastic demand over finite horizons

@article{Gallego1994OptimalDP,
  title={Optimal dynamic pricing of inventories with stochastic demand over finite horizons},
  author={G. Gallego and G. Ryzin},
  journal={Management Science},
  year={1994},
  volume={40},
  pages={999-1020}
}
In many industries, managers face the problem of selling a given stock of items by a deadline. We investigate the problem of dynamically pricing such inventories when demand is price sensitive and stochastic and the firm's objective is to maximize expected revenues. Examples that fit this framework include retailers selling fashion and seasonal goods and the travel and leisure industry, which markets space such as seats on airline flights, cabins on vacation cruises, and rooms in hotels that… Expand
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