This article presents a dynamic pricing model of a retailer selling an inventory, accounting for consumer behavior. The authors propose an optimal control model, maximizing the intertemporal profit with consumers sensitive to the selling price and to a reference price. The optimal dynamic...

To attract potential customers and to effectively sell their inventories over time, retailers often invest in different advertising channels and apply dynamic pricing strategies. However, to compose a beneficial marketing mix in dynamic settings is challenging. The high problem complexity is...