A Simple Rule for Pricing with Limited Knowledge of Demand

Published Online:https://doi.org/10.1287/mnsc.2020.3602

References

  • Adida E, Perakis G (2006) A robust optimization approach to dynamic pricing and inventory control with no backorders. Math. Programming 107(1–2):97–129.CrossrefGoogle Scholar
  • Araman VF, Caldentey R (2011) Revenue management with incomplete demand information. Cochran JJ, ed. Wiley Encyclopedia of Operations Research and Management Science (John Wiley & Sons, Hoboken, NJ). CrossrefGoogle Scholar
  • Aviv Y, Pazgal A (2005) A partially observed Markov decision process for dynamic pricing. Management Sci. 51(9):1400–1416.LinkGoogle Scholar
  • Ball MO, Queyranne M (2009) Toward robust revenue management: Competitive analysis of online booking. Oper. Res. 57(4):950–963.LinkGoogle Scholar
  • Balvers RJ, Cosimano TF (1990) Actively learning about demand and the dynamics of price adjustment. Econom. J. 100(402):882–898.Google Scholar
  • Bergemann D, Schlag K (2011) Robust monopoly pricing. J. Econom. Theory 146(6):2527–2543.CrossrefGoogle Scholar
  • Bertsimas D, Perakis G (2006) Dynamic pricing: A learning approach. Lawphongpanich S, Hearn DW, Smith MJ, eds. Mathematical and Computational Models for Congestion Charging (Springer, Boston), 45–79.Google Scholar
  • Besbes O, Zeevi A (2009) Dynamic pricing without knowing the demand function: Risk bounds and near-optimal algorithms. Oper. Res. 57(6):1407–1420.LinkGoogle Scholar
  • Besbes O, Zeevi A (2015) On the (surprising) sufficiency of linear models for dynamic pricing with demand learning. Management Sci. 61(4):723–739.LinkGoogle Scholar
  • Carroll G (2015) Robustness and linear contracts. Amer. Econom. Rev. 105(2):536–563.CrossrefGoogle Scholar
  • Chu CS, Leslie P, Sorensen A (2011) Bundle-size pricing as an approximation to mixed bundling. Amer. Econom. Rev. 101(1):262–303.Google Scholar
  • Cohen MC, Leung NHZ, Panchamgam K, Perakis G, Smith A (2017) The impact of linear optimization on promotion planning. Oper. Res. 65(2):446–468.LinkGoogle Scholar
  • Dawes RM (1979) The robust beauty of improper linear models in decision making. Amer. Psych. 34(7):571–582.CrossrefGoogle Scholar
  • Farias VF, Van Roy B (2010) Dynamic pricing with a prior on market response. Oper. Res. 58(1):16–29.LinkGoogle Scholar
  • Handel BR, Misra K (2015) Robust new product pricing. Marketing Sci. 34(6):864–881.LinkGoogle Scholar
  • Hansen LP, Sargent TJ (2008) Robustness (Princeton University Press¸ Princeton, NJ).CrossrefGoogle Scholar
  • Hartline JD, Roughgarden T (2009) Simple vs. optimal mechanisms. Proc. 10th ACM Conf. Electronic Commerce (Association of Computing Machinery, New York), 225–234.Google Scholar
  • Koushik D, Higbie JA, Eister C (2012) Retail price optimization at intercontinental hotels group. Interfaces 42(1):45–57.LinkGoogle Scholar
  • Krishnan TV, Bass FM, Jain DC (1999) Optimal pricing strategy for new products. Management Sci. 45(12):1650–1663.LinkGoogle Scholar
  • Lim AE, Shanthikumar JG (2007) Relative entropy, exponential utility, and robust dynamic pricing. Oper. Res. 55(2):198–214.LinkGoogle Scholar
  • Lin KY (2006) Dynamic pricing with real-time demand learning. Eur. J. Oper. Res. 174(1):522–538.CrossrefGoogle Scholar
  • Milon JW, Gressel J, Mulkey D (1984) Hedonic amenity valuation and functional form specification. Land Econom. 60(4):378–387.CrossrefGoogle Scholar
  • Montgomery AL (1997) Creating micro-marketing pricing strategies using supermarket scanner data. Marketing Sci. 16(4):315–337.LinkGoogle Scholar
  • Mulugeta D, Greenfield J, Bolen T, Conley L (2013) Price- and cross-price elasticity estimation using SAS. Proc. SAS Global Forum 2013, Paper 425-2013.Google Scholar
  • Pekgün P, Menich RP, Acharya S, Finch PG, Deschamps F, Mallery K, Sistine JV, Christianson K, Fuller J (2013) Carlson Rezidor Hotel Group maximizes revenue through improved demand management and price optimization. Interfaces 43(1):21–36.LinkGoogle Scholar
  • Rothschild M (1974) A two-armed bandit theory of market pricing. J. Econom. Theory 9(2):185–202.CrossrefGoogle Scholar
  • Segal I (2003) Optimal pricing mechanisms with unknown demand. Amer. Econom. Rev. 93(3):509–529.CrossrefGoogle Scholar
  • Shy O (2006) How to Price: A Guide to Pricing Techniques and Yield Management (Cambridge University Press, Cambridge, UK).Google Scholar
  • Thiele A (2009) Multi-product pricing via robust optimisation. J. Revenue Pricing Management 8(1):67–80.CrossrefGoogle Scholar
  • Urban GL, Weinberg BD, Hauser JR (1996) Premarket forecasting of really-new products. J. Marketing 60(1):47–60.CrossrefGoogle Scholar
  • Wall Street Journal (2013) The challenge of copying biotech drugs. Wall Street Journal (February 26), https://www.wsj.com/articles/SB10001424127887324338604578328623588135326.Google Scholar
  • Wilman EA (1981) Hedonic prices and beach recreational values. Adv. Appl. Microeconom. 1:77–103.Google Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.