Dynamic and Adaptive Price Quotation for Due Date Guarantee Service

摘要：

One-of-a-kind-production (OKP) firm makes price quotation to each customer on its arrival. The price is decided based on the firms knowledge of its target market,i.e.,the distributions of customers willingness to pay,etc. We propose a dynamic pricing strategy to find the optimal price as well as an approximation method for large scale problem. We also propose a learning method to adaptively revise the firms estimation of the distributions of customers willingness to according to the customers purchase behavior. We consider the case where the firm only provides due-date-guaranteed service and opens a single due date option at a time. We compare the price quotations obtained from dynamic programming and from approximation. We also design the simulation experiment to test the proposed adaptive learning method. The simulation result shows that the proposed learning method can search the unknown market parameters effectively.

关键词： Pricing Bellman Equation parametric learning willingness to pay impatience factor

作者: Jian Zhang Yiliu Tu

作者单位: Department of Mechanical and Manufacturing Engineering,University of Calgary,Canada

会议类型: 国际会议

会议名称: The Tenth Wuhan International Conference on E-Business(第十届武汉电子商务国际会议)

会议地点: 成都

会议语种:英文

页码: 1244-1249

在线出版日期: 2011-05-13（万方平台首次上网日期，不代表论文的发表时间）