We study the profit maximization problem of a market maker in a spread betting market. In this market, the market maker quotes cutoff lines for the outcome of a certain future event as “prices,” and bettors bet on whether the event outcome exceeds the cutoff lines. Anonymous bettors with...

We consider the markdown pricing problem of a firm that sells a product to a mixture of myopic and forward-looking customers. The firm faces an uncertainty about the customers' forward-looking behavior, arrival pattern, and valuations for the product, which we collectively refer to as the demand...

We consider a price-setting firm that sells a product over a continuous time horizon. The firm is uncertain about the sensitivity of demand to price adjustments, and continuously updates its prior belief on an unobservable sensitivity parameter by observing the demand responses to prices. The...

We consider a seller's dynamic pricing problem with demand learning and reference effects. We first study the case where customers are loss-averse: they have a reference price that can vary over time, and the demand reduction when the selling price exceeds the reference price dominates the...