Open Access. Powered by Scholars. Published by Universities.®

Other Social and Behavioral Sciences Commons

Open Access. Powered by Scholars. Published by Universities.®

Articles 1 - 2 of 2

Full-Text Articles in Other Social and Behavioral Sciences

Intertemporal Pricing With Strategic Customer Behavior, Xuanming Su May 2007

Intertemporal Pricing With Strategic Customer Behavior, Xuanming Su

Operations, Information and Decisions Papers

This paper develops a model of dynamic pricing with endogenous intertemporal demand. In the model, there is a monopolist who sells a finite inventory over a finite time horizon. The seller adjusts prices dynamically to maximize revenue. Customers arrive continually over the duration of the selling season. At each point in time, customers may purchase the product at current prices, remain in the market at a cost to purchase later, or exit, and they wish to maximize individual utility. The customer population is heterogeneous along two dimensions: they may have different valuations for the product and different degrees of patience ...


Strategic Technology Choice And Capacity Investment Under Demand Uncertainty, Manu Goyal, Serguie Netessine Feb 2007

Strategic Technology Choice And Capacity Investment Under Demand Uncertainty, Manu Goyal, Serguie Netessine

Operations, Information and Decisions Papers

This paper studies the impact of competition on a firm’s choice of technology (product-flexible or product-dedicated) and capacity investment decisions. Specifically, we model two firms competing with each other in two markets characterized by price-dependent and uncertain demand. The firms make three decisions in the following sequence: choice of technology (technology game), capacity investment (capacity game), and production quantities (production game). The technology and capacity games occur while the demand curve is still uncertain, and the production game is postponed until after the demand curve is revealed.

We develop best-response functions for each firm in the technology game and ...