REFERENCE EFFECT AND INVENTORY ON PRICING FOR DAILY PERISHABLE PRODUCTS
This paper considers a discount pricing problem for a monopolist firm which sells daily perishable products. When the products are likely to be unsold, they are marked down at the end of day so that the firm makes more daily revenue. The discount sale, however, drops consumers reference prices with which the consumers judge if a selling price is a gain or a loss. The declined reference price reduces the demand sold at a regular price, which is called the reference effect. The discount sale has a negative effect on the future revenue for the firm. This paper has formulated the discount pricing problem with reference effects and inventory to derive an optimal pricing computed by dynamic programming. Numerical experiments have illustrated that the amount of predicted unsold products significantly influences the optimal pricing policy.
revenue management reference effect optimal pricing inventory management retailing
T. Koide H. Sandoh
Department of Information and Management Sciences, University of Marketing Distribution and Sciences Department of Management Science and Business Administration, Graduate School of Economics,Osaka Uni
国际会议
上海
英文
1-5
2009-08-02（万方平台首次上网日期，不代表论文的发表时间）