Aviv, Yossi; Pazgal, Amit - In: Management Science 51 (2005) 9, pp. 1400-1416
In this paper, we develop a stylized partially observed Markov decision process (POMDP) framework to study a dynamic pricing problem faced by sellers of fashion-like goods. We consider a retailer that plans to sell a given stock of items during a finite sales season. The objective of the...