In this paper we first show that the gains achievable by integrating pricing and inventory controlare usually small for classical demand functions. We then introduce reference price models anddemonstrate that for this class of demand functions the benefits of integration with inventory...

In this paper we first show that the gains achievable by integrating pricing and inventory control are usually small for classical demand functions. We then introduce reference price models and demonstrate that for this class of demand functions the benefits of integration with inventory control...