Optimal pricing for perishable products
Optimal pricing for perishable products
In many industrial settings, managers face the problem of establishing a pricing policy that maximises the revenue from selling a given inventory of items by a fixed deadline, with the full inventory of items being available for sale from the beginning of the selling period. This problem arises in a variety of industries, including the sale of fashion garments, flight seats, and hotel rooms. We present a family of continuous pricing functions for which the optimal pricing strategy can be explicitly characterised and easily implemented. These pricing functions are the basis for a general pricing methodology which is particularly well suited for application in the context of an increasing role for the Internet as a means to market goods and services.
pricing, internet, yield management, finite horizon, optimal policy
246-254
Anjos, Miguel F.
0103b24d-cab5-4109-9924-dc9eebd04257
Cheng, Russell C.H.
a4296b4e-7693-4e5f-b3d5-27b617bb9d67
Currie, Christine S.M.
dcfd0972-1b42-4fac-8a67-0258cfdeb55a
2005
Anjos, Miguel F.
0103b24d-cab5-4109-9924-dc9eebd04257
Cheng, Russell C.H.
a4296b4e-7693-4e5f-b3d5-27b617bb9d67
Currie, Christine S.M.
dcfd0972-1b42-4fac-8a67-0258cfdeb55a
Anjos, Miguel F., Cheng, Russell C.H. and Currie, Christine S.M.
(2005)
Optimal pricing for perishable products.
European Journal of Operational Research, 166 (1), .
(doi:10.1016/j.ejor.2004.02.015).
Abstract
In many industrial settings, managers face the problem of establishing a pricing policy that maximises the revenue from selling a given inventory of items by a fixed deadline, with the full inventory of items being available for sale from the beginning of the selling period. This problem arises in a variety of industries, including the sale of fashion garments, flight seats, and hotel rooms. We present a family of continuous pricing functions for which the optimal pricing strategy can be explicitly characterised and easily implemented. These pricing functions are the basis for a general pricing methodology which is particularly well suited for application in the context of an increasing role for the Internet as a means to market goods and services.
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Published date: 2005
Keywords:
pricing, internet, yield management, finite horizon, optimal policy
Organisations:
Operational Research
Identifiers
Local EPrints ID: 40815
URI: http://eprints.soton.ac.uk/id/eprint/40815
ISSN: 0377-2217
PURE UUID: b48e6aa7-afad-441e-b234-61f859624694
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Date deposited: 10 Jul 2006
Last modified: 16 Mar 2024 03:30
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Author:
Miguel F. Anjos
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