Optimal Markdown Pricing: Implications of Inventory Display Formats in the Presence of Strategic Customers

Rui Yin
Rui Yin
[email protected]
W. P. Carey School of Business, Arizona State University, Tempe, Arizona 85287
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,
Yossi Aviv
Yossi Aviv
[email protected]
Olin Business School, Washington University in St. Louis, St. Louis, Missouri 63130
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,
Amit Pazgal
Amit Pazgal
[email protected]
Jesse H. Jones Graduate School of Management, Rice University, Houston, Texas 77252
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,
Christopher S. Tang
Christopher S. Tang
[email protected]
Anderson School of Management, University of California, Los Angeles, Los Angeles, California 90095
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Rui Yin

[email protected]

W. P. Carey School of Business, Arizona State University, Tempe, Arizona 85287

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Yossi Aviv

[email protected]

Olin Business School, Washington University in St. Louis, St. Louis, Missouri 63130

Search for more papers by this author

Amit Pazgal

[email protected]

Jesse H. Jones Graduate School of Management, Rice University, Houston, Texas 77252

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Christopher S. Tang

[email protected]

Anderson School of Management, University of California, Los Angeles, Los Angeles, California 90095

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Published Online:18 Jun 2009https://doi.org/10.1287/mnsc.1090.1029

Supplemental Material

mnsc.1090.1029-sm-ec.pdf (350 KB)

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- Markdown Pricing with Unknown Fraction of Strategic Customers
  Adam J. Mersereau,
  Dan Zhang,
  4 May 2012 | Manufacturing & Service Operations Management, Vol. 14, No. 3
- The Value of Product Variety When Selling to Strategic Consumers
  Ali K. Parlaktürk,
  18 May 2012 | Manufacturing & Service Operations Management, Vol. 14, No. 3
- Mean-Risk Analysis of Supply Chain Coordination Problems
  9 May 2012
- Advance Demand Information, Price Discrimination, and Pre-Order Strategies
  SSRN Electronic Journal, Vol. 10
- Is Capacity Rationing Optimal When Customers Use Anecdotal Reasoning?
  SSRN Electronic Journal, Vol. 98
- Price as a Signal of Product Availability: Is it Cheap?
  SSRN Electronic Journal, Vol. 13
- The integrated size and price optimization problem
  Numerical Algebra, Control & Optimization, Vol. 2, No. 4
- Rationing and pricing with strategic consumer behavior
- The Value of Fast Fashion: Quick Response, Enhanced Design, and Strategic Consumer Behavior
  Gérard P. Cachon,
  Robert Swinney,
  4 March 2011 | Management Science, Vol. 57, No. 4
- Buying from the Babbling Retailer? The Impact of Availability Information on Customer Behavior
  Gad Allon,
  Achal Bassamboo,
  1 April 2011 | Management Science, Vol. 57, No. 4
- Modeling strategic customers using simulations - with examples from airline revenue management
  Procedia - Social and Behavioral Sciences, Vol. 20
- Advance Selling by a Newsvendor Retailer
  1 January 2011 | Production and Operations Management, Vol. 20, No. 1
- Optimal Reservation Policies and Market Segmentation
  SSRN Electronic Journal, Vol. 14
- Profiting from Demand Uncertainty: Pricing Strategies in Advance Selling
  SSRN Electronic Journal, Vol. 10
- Dynamic Pricing with Strategic Customers (Dynamic Pricing mit strategischen Konsumenten)
  SSRN Electronic Journal, Vol. 12
- Study on Revenue Management Considering Strategic Customer Behavior
  Journal of Service Science and Management, Vol. 04, No. 04
- Selling with Binding Reservations in the Presence of Strategic Consumers
  Nikolay Osadchiy,
  Gustavo Vulcano,
  25 October 2010 | Management Science, Vol. 56, No. 12
- A review of marketing–operations interface models: From co-existence to coordination and collaboration
  International Journal of Production Economics, Vol. 125, No. 1
- Revenue Management with Strategic Customers: Last-Minute Selling and Opaque Selling
  Kinshuk Jerath,
  Serguei Netessine,
  Senthil K. Veeraraghavan,
  12 February 2010 | Management Science, Vol. 56, No. 3
- Optimal Pricing with Speculators and Strategic Consumers
  Xuanming Su,
  28 September 2009 | Management Science, Vol. 56, No. 1
- Buy Now and Match Later: Impact of Posterior Price Matching on Profit with Strategic Consumers
  Guoming Lai,
  Laurens G. Debo,
  Katia Sycara,
  10 February 2009 | Manufacturing & Service Operations Management, Vol. 12, No. 1
- Are Consumers Really Strategic? Implications from an Experimental Study
  SSRN Electronic Journal, Vol. 10
- Counteracting Strategic Consumer Behavior in Dynamic Pricing Systems
  29 May 2009
- Mitigating the Adverse Impact of Strategic Waiting in Dynamic Pricing Settings: A Study of Two Sales Mechanisms
  29 May 2009
- Inter-temporal Pricing and Consumer Stockpiling
  SSRN Electronic Journal, Vol. 35
- Optimal Pricing with Speculators and Strategic Consumers
  SSRN Electronic Journal, Vol. 10
- A Review of Marketing-Operations Interface Models: From Co-Existence to Coordination and Collaboration
  SSRN Electronic Journal, Vol. 50
- Disclosing Inventory to Mitigate the Impact of Strategic Waiting on Profits
  SSRN Electronic Journal, Vol. 36
- Buying from the Babbling Newsvendor: Availability Information and Cheap Talk
  SSRN Electronic Journal, Vol. 34

Volume 55, Issue 8

August 2009

Pages iv-1450

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Received:June 02, 2007
Accepted:March 22, 2009
Published Online:June 18, 2009

Cite as

Rui Yin, Yossi Aviv, Amit Pazgal, Christopher S. Tang, (2009) Optimal Markdown Pricing: Implications of Inventory Display Formats in the Presence of Strategic Customers. Management Science 55(8):1391-1408.

https://doi.org/10.1287/mnsc.1090.1029

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Optimal Markdown Pricing: Implications of Inventory Display Formats in the Presence of Strategic Customers

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Volume 55, Issue 8

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