authors propose an optimal control model, maximizing the intertemporal profit with consumers sensitive to the selling price … and to a reference price. The optimal dynamic pricing policy is solved with Pontryagin's maximum principle with a … structural (general) demand function. They obtain an original pricing rule, which explicitly accounts for the impact of price and …

authors propose an optimal control model, maximizing the intertemporal profit with consumers sensitive to the selling price … and to a reference price. The optimal dynamic pricing policy is solved with Pontryagin's maximum principle with a … price and inventory on future profits. The dynamics of price do not have to imitate the dynamics of the reference price …