We consider a single product, single period inventory problem with stochastic price-dependent demand. The ordering and pricing decisions have to be made at the beginning of the period before demand is realized. Unsatisfied demand is lost and excess inventory has to be salvaged. The standard...

We consider the price-setting newsvendor model where the ordering and pricing decisions have to be made at the beginning of a selling period before demand is realized. Unsatisfied demand is lost and excess inventory has to be salvaged. The standard approach is to assume stochastic demand to be...