On the Efficacy of Static Prices for Revenue Management in the Face of Strategic Customers

References

• Afèche P, Mendelson H (2004) Pricing and priority auctions in queueing systems with a generalized delay cost structure. Management Sci. 50(7):869–882.Link, Google Scholar
• Afèche P, Pavlin JM (2016) Optimal price/lead-time menus for queues with customer choice: Segmentation, pooling, and strategic delay. Management Sci. 62(8):2412–2436.Link, Google Scholar
• Anderson SP, Renault R (1999) Pricing, product diversity, and search costs: A Bertrand-Chamberlin-Diamond model. RAND J. Econom. 30(4):719–735.Crossref, Google Scholar
• Ata B, Olsen TL (2009) Near-optimal dynamic lead-time quotation and scheduling under convex-concave customer delay costs. Oper. Res. 57(3):753–768.Link, Google Scholar
• Aviv Y, Pazgal A (2008) Optimal pricing of seasonal products in the presence of forward-looking consumers. Manufacturing Service Oper. Management 10(3):339–359.Link, Google Scholar
• Azevedo EM, Gottlieb D (2012) Risk-neutral firms can extract unbounded profits from consumers with prospect theory preferences. J. Econom. Theory 147(3):1291–1299.Crossref, Google Scholar
• Besbes O, Lobel I (2015) Intertemporal price discrimination: Structure and computation of optimal policies. Management Sci. 61(1):92–110.Link, Google Scholar
• Board S, Skrzypacz A (2016) Revenue management with forward looking buyers. J. Political Econom. 124(4):1046–1087.Crossref, Google Scholar
• Borgs C, Candogan O, Chayes J, Lobel I, Nazerzadeh H (2014) Optimal multiperiod pricing with service guarantees. Management Sci. 60(7):1792–1811.Link, Google Scholar
• Brémaud P (1981) Point Processes and Queues: Martingale Dynamics (Springer, New York).Crossref, Google Scholar
• Caldentey R, Vulcano G (2007) Online auction and list price revenue management. Management Sci. 53(5):795–813.Link, Google Scholar
• Caldentey R, Liu Y, Lobel I (2016) Intertemporal pricing under minimax regret. Operations Res. 65(1):104–129.Link, Google Scholar
• Chen Y, Farias VF (2018) Robust dynamic pricing with strategic customers. Math. Oper. Res. 43(4):1119–1142.Link, Google Scholar
• Diamond PA (1971) A model of price adjustment. J. Econom. Theory 3(2):156–168.Crossref, Google Scholar
• Doroudi S, Akan M, Harchol-Balter M, Karp J, Borgs C, Chayes JT (2013) Priority pricing in queues with a continuous distribution of customer valuations. Technical Report CM-CS-13-109, Computer Science Department, Carnegie Mellon University, Pittsburgh.Google Scholar
• Ellison G, Wolitzky A (2012) A search cost model of obfuscation. RAND J. Econom. 43(3):417–441.Crossref, Google Scholar
• Fiat A, Goldner K, Karlin AR, Koutsoupias E (2016) The Fedex problem. Proc. 2016 ACM Conf. Econom. Comput. (Association for Computing Machinery, New York), 21–22.Crossref, Google Scholar
• Gallego G, Van Ryzin G (1994) Optimal dynamic pricing of inventories with stochastic demand over finite horizons. Management Sci. 40(8):999–1020.Link, Google Scholar
• Gallego G, Van Ryzin G (1997) A multiproduct dynamic pricing problem and its applications to network yield management. Oper. Res. 45(1):24–41.Link, Google Scholar
• Gallien J (2006) Dynamic mechanism design for online commerce. Oper. Res. 54(2):291–310.Link, Google Scholar
• Gurvich I, Lariviere MA, Ozkan C (2018) Coverage, coarseness and classification: Determinants of social efficiency in priority queues. Management Sci. 65(3):1061–1075.Link, Google Scholar
• Haghpanah N, Hartline J (2015) Reverse mechanism design. Proc. 16th ACM Conf. Econom. Comput. (Association for Computing Machinery, New York), 757–758.Crossref, Google Scholar
• Hu Z, Chen X, Hu P (2016) Dynamic pricing with gain-seeking reference price effects. Oper. Res. 64(1):150–157.Link, Google Scholar
• Katta AK, Sethuraman J (2005) Pricing strategies and service differentiation in an M/M/1 queue—A profit maximization perspective. Working paper, Columbia University, New York.Google Scholar
• Kilcioglu C, Maglaras C (2015) Revenue maximization for cloud computing services. ACM SIGMETRICS Performance Evaluation Rev. 43(3):76.Crossref, Google Scholar
• Li J, Granados N, Netessine S (2014) Are consumers strategic? Structural estimation from the air-travel industry. Management Sci. 60(9):2114–2137.Link, Google Scholar
• Liu Y, Cooper WL (2015) Optimal dynamic pricing with patient customers. Oper. Res. 63(6):1307–1319.Link, Google Scholar
• Liu Q, Van Ryzin GJ (2008) Strategic capacity rationing to induce early purchases. Management Sci. 54(6):1115–1131.Link, Google Scholar
• Lobel I (2017) Dynamic pricing with heterogeneous patience levels. Working paper, New York University, New York.Crossref, Google Scholar
• Milgrom P, Segal I (2002) Envelope theorems for arbitrary choice sets. Econometrica 70(2):583–601.Crossref, Google Scholar
• Moon K, Bimpikis K, Mendelson H (2017) Randomized markdowns and online monitoring. Management Sci. 64(3):1271–1290.Link, Google Scholar
• Nazerzadeh H, Randhawa RS (2018) Near-optimality of coarse service grades for customer differentiation in queueing systems. Production Oper. Management 7(3):578–595Crossref, Google Scholar
• Özer Ö, Phillips R (2012) The Oxford Handbook of Pricing Management (Oxford University Press, Oxford, UK).Crossref, Google Scholar
• Pai MM, Vohra R (2013) Optimal dynamic auctions and simple index rules. Math. Oper. Res. 38(4):682–697.Link, Google Scholar
• Rob R (1985) Equilibrium price distributions. Rev. Econom. Stud. 52(3):487–504.Crossref, Google Scholar
• Said M (2012) Auctions with dynamic populations: Efficiency and revenue maximization. J. Econom. Theory 147(6):2419–2438.Crossref, Google Scholar
• Stokey NL (1979) Intertemporal price discrimination. Quart. J. Econom. 93(3):355–371.Crossref, Google Scholar
• Talluri KT, Van Ryzin GJ (2006) The Theory and Practice of Revenue Management, International Series in Operations Research and Management Science, vol. 68 (Springer Science & Business Media, New York).Google Scholar
• Vulcano G, Van Ryzin G, Maglaras C (2002) Optimal dynamic auctions for revenue management. Management Sci. 48(11):1388–1407.Link, Google Scholar
• Wang Z (2016) Intertemporal price discrimination via reference price effects. Oper. Res. 64(2):290–296.Link, Google Scholar
• Yin R, Aviv Y, Pazgal A, Tang CS (2009) Optimal markdown pricing: Implications of inventory display formats in the presence of strategic customers. Management Sci. 55(8):1391–1408.Link, Google Scholar