E‐retailer's dynamic inventory and pricing policy with price‐protection services

Ling Zhao, Anquan Zou and Pin Zhou

Managerial and Decision Economics, 2023, vol. 44, issue 1, 490-501

Abstract: This paper investigates a coordinated inventory and pricing problem with the e‐retailer's price‐protection service over multiple periods. By solving a stochastic dynamic programming in the two‐dimensional state space, the optimal policy is fully characterized. Specifically, the inventory policy is a previous price‐dependent base‐stock policy. The pricing policy: as the previous price increases, the optimal current price stays unchanged first, then increases, and finally decreases. Numerical results indicate that with the impact of the price‐protection service increasing, the base‐stock level and current price rise under some conditions. Moreover, the price‐protection service benefits the e‐retailer when its impact is large enough.

Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/mde.3695

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:wly:mgtdec:v:44:y:2023:i:1:p:490-501

Access Statistics for this article

Managerial and Decision Economics is currently edited by Antony Dnes

More articles in Managerial and Decision Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().