In this study, we investigate two important questions related to dynamic pricing in distribution channels: (i) Are coordinated pricing decisions efficient in a context where prices have carry-over effects on demand? (ii) Should firms practice a skimming or a penetration strategy if they choose...

In the airline industry, deciding the ticket price for each flight directly affects the number of people that in the future will try to buy a ticket. Depending on the willingness-to-pay of the customers the flight might take off with empty seats or seats sold at a lower price. Therefore, based...

We consider a make-to-stock system served by an unreliable machine that produces one type of product, which is sold to customers at one of two possible prices depending on the inventory level at the time when a customer arrives (i.e., the decision point). The system manager must determine the...

This article studies a two-firm dynamic pricing model with random production costs. The firms produce the same perishable products over an infinite time horizon when production (or operation) costs are random. In each period, each firm determines its price and production levels based on its...

The question of simultaneous dynamic pricing, product and process investment policies is crucial for manufacturing and high-tech industries. This paper models these policies in an optimal control setting. On the supply side, the firm sets prices, product and process investment levels over time....

In this paper we consider a dynamic pricing model for a firm knowing that a competitor adopts a static pricing strategy. We establish a continuous time model to analyze the effect of dynamic pricing on the improvement in expected revenue in the duopoly. We assume that customers arrive to...