We study the problem of jointly optimizing the price and order quantity for a perishable product, also known as the pricing-newsvendor problem. We consider the case with demand ambiguity where the demand is a function of the price and an uncertain factor, of which only the support information is...

The benefits of inventory risk pooling are well known and documented. Eppen (1979) and Corbett and Rajaram (2006) prove that the expected costs of a centralized system are increasing in the degree of (positive) dependence of demand in an idealized newsvendor setting. Using the supermodular...