Dynamic Monopoly Pricing under a Poisson-Type Uncertain Demand

Yu-Min Chen and Dipak C Jain

The Journal of Business, 1992, vol. 65, issue 4, 593-614

Abstract: This article explores dynamic pricing strategies in the presence of uncertainty. Diffusion dynamics, experience curve effects, and a Poisson type of uncertainty in the demand are incorporated in a model using the framework of a stochastic control problem. The results indicate that the movement of the expected price depends on the relative strength of the contingent effects and the effects of the experience. If the direction of the former is opposite to the latter and is substantial enough to dominate it, the expected price path will show a pattern different from the one predicted by a deterministic model. Copyright 1992 by University of Chicago Press.

Date: 1992
References: Add references at CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://dx.doi.org/10.1086/296587 full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ucp:jnlbus:v:65:y:1992:i:4:p:593-614

Access Statistics for this article

More articles in The Journal of Business from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().