In this paper we study the impact of customer stochasticity on firm price discrimination strategies. We develop a new model termed the Bayesian Mixture Scale Heterogeneity (BMSH) model that incorporates both parameter heterogeneity and customer stochasticity using a mixture model approach, and...

We study a competitive market for a homogeneous good, in which the only uncertainty concerns the number of identical sellers, who are sampled by a finite Poisson process from a continuum of potential participants. It is shown that, in equilibrium, there is price dispersion. Specifically, prices...

Price management is one of the most central and sensitive elements of the process of managing a successful brand. Even a small change in price can have a disproportionate change in profitability, thereby increasing the importance of accurate and scientific ways of determining optimal prices....

The approach taken by researchers in the area of behavioral pricing is based on the psychological principles of human perception and information processing as well as on sociological principles of human relations and social norms. In this e-book we feature several researchers who have...