A firm that accounts for consumer behavior sets the selling price of a product considering the reference price of consumers. In the literature, a reference price is usually modeled as depending on past selling prices. That is, past selling prices implicitly constrain the current selling price of...

We study the dynamic pricing problem of a monopolist firm in presence of strategic customers that differ in their valuations and risk preferences. We show that this problem can be formulated as a static mechanism design problem, which is more amenable to analysis. We highlight several structural...

We consider a dynamic pricing problem in which the seller sells a limited amount of inventory over a short time horizon. The distribution of customer willingness-to-pay is unknown, and the seller learns about the distribution from observing customer purchase decisions. Such a problem arises in...

We consider a firm that sells a product over T periods without knowing the demand function. The firm sequentially sets prices to earn revenue and to learn the underlying demand function simultaneously. In practice, this problem is commonly solved via greedy iterative least squares (GILS). At...