 Dynamic pricing of limited inventories for multi-generation productsChia-Wei Kuo and Kwei-Long Huang European Journal of Operational Research, 2012, vol. 217, issue 2, 394-403 Abstract: In this research, we consider a retailer selling products from two different generations, both with limited inventory over a predetermined selling horizon. Due to the spatial constraints or the popularity of a given product, the retailer may only display goods from one specific generation. If the transaction of the displayed item cannot be completed, the retailer may provide an alternative from another generation. We analyze two models – posted-pricing-first model and negotiation-first model. The former considers negotiation as being allowed on the price of the second product only and in the latter, only the price of the first product is negotiable. Our results show that the retailer can adopt both models effectively depending on the relative inventory levels of the products. In addition, the retailer is better off compared to the take-it-or-leave-it pricing when the inventory level of the negotiable product is high. Keywords: Revenue management; Multi-generation products; Bargaining; Dynamic programming (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:217:y:2012:i:2:p:394-403 DOI: 10.1016/j.ejor.2011.09.020 Access Statistics for this article European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati More articles in European Journal of Operational Research from Elsevier |
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