Optimal Dynamic Pricing of Perishable Products with Reference Price Effect

DOI

10.2991/icmesd-17.2017.90How to use a DOI?

Keywords

Dynamic pricing, Strategic customer behavior, Reference price effect

Abstract

This paper studies a two-stage dynamic pricing model with customers' strategic behavior and reference price effect. We used Stachelberg game theory and analyzed the decision-making of a monopolistic firm and its customers. Finally, we get the optimal pricing strategy for the firm in the market. What's more, the numerical analysis shows that the total profit is decreasing with the increase of the strategic customers' proportion. It also indicates that the optimal prices are increasing with the increase of the customers' memory coefficient. Results in this paper will give us some management implications.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Min Wang
AU  - Wen-Sheng Yang
PY  - 2017/05
DA  - 2017/05
TI  - Optimal Dynamic Pricing of Perishable Products with Reference Price Effect
BT  - Proceedings of the 3rd Annual International Conference on Management, Economics and Social Development (ICMESD 17)
PB  - Atlantis Press
SP  - 495
EP  - 500
SN  - 2352-5428
UR  - https://doi.org/10.2991/icmesd-17.2017.90
DO  - 10.2991/icmesd-17.2017.90
ID  - Wang2017/05
ER  -