MOPTA 05
July 25-27, 2005, Windsor ON Canada
Speakers Only - Log In
Return to
MOPTA 05 homepage
MOPTA 05 Presentation Information
Title:
Price Guarantees in Dynamic Pricing and Revenue Management
Presenter:
Mikhail Nediak
Presenter's Affiliation:
School of Business, Queen's University
Presenter's E-mail address:
mnediak@business.queensu.ca
Authors
:
Yuri Levin, Jeff McGill and Mikhail Nediak
Abstract (100 words or less):
We present a model for revenue management of product sales that incorporates both dynamic pricing and a price guarantee that provides customers with compensation if the price of the product drops below a level specified at the time of purchase. We consider the problem of simultaneously determining optimal dynamic price and guarantee policies for items with price-sensitive demand which also depends on parameters of the price guarantee. The model is used for pricing a fixed stock with limited availability over a finite time horizon. We formulate the model as a large-scale nonlinear program and consider efficient heuristics for its solution.
nediak-mopta to post.pdf