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This paper addresses the problem of why and how a seller should develop a discount pricing structure even if such a … pricing structure does not alter ultimate demand. The situation modeled is most appropriate where the seller's product does … price is only one of many factors considered in making a purchase decision. A model of buyer reaction to any given pricing …
Persistent link: https://www.econbiz.de/10009189588
every x ∈ Q. The customers know the pricing pattern p and may shop at any place y, paying the cost p(y) and additionally a … mathematical framework and we obtain an existence result for a pricing strategy which maximizes the total profit of the agent. We …
Persistent link: https://www.econbiz.de/10009189927
With declining costs of distributing digital products comes renewed interest in strategies for pricing goods with low … marginal costs. In this paper, we evaluate customized bundling, a pricing strategy that gives consumers the right to choose up …
Persistent link: https://www.econbiz.de/10009191161
We study competitive positioning and pricing strategies in markets where consumers seek variety. Variety seeking …
Persistent link: https://www.econbiz.de/10009191215
pricing problem faced by sellers of fashion-like goods. We consider a retailer that plans to sell a given stock of items … propose an active-learning heuristic pricing policy. We conduct a numerical study to test the performance of four different … heuristic dynamic pricing policies in order to gain insight into several important managerial questions that arise in the …
Persistent link: https://www.econbiz.de/10009191340
outputs and then use these costs to set prices, a process known as fully-distributed cost-based pricing. If the costs incurred …
Persistent link: https://www.econbiz.de/10009191370
We study a market with customers who have heterogeneous preferences for product attributes. We consider two types of firms that compete on price and product variety: A traditional firm, which chooses a limited set of product configurations, and a customizing firm, which can produce any...
Persistent link: https://www.econbiz.de/10009191396
We investigate a firm's choice of prices and qualities of a product line to signal competitive advantage to potential entrants and to discourage entry. The market consists of customer segments with different valuations for product quality. We demonstrate that a higher quality and a higher price...
Persistent link: https://www.econbiz.de/10009191406
with) their advantages (disadvantages) through their pricing behavior. Guided by microeconomic theory and insights from the …
Persistent link: https://www.econbiz.de/10009191428
The entry of a new product (attacker) into a competitive market is likely to provoke responses from some or all of the existing products (defenders). This paper investigates the development of optimal defensive strategies based on an understanding of the possible reactions of all the defenders...
Persistent link: https://www.econbiz.de/10009191502