We consider a continuous time dynamic pricing model where a seller needs to sell a single item over a finitetime horizon. Customers arrive in accordance with a Poisson process. Upon arrival, a customer either purchasesthe item if the posted price is lower than his/her reservation price, or...

We provide a comprehensive characterization of the relationship between optimal capacity and the degree of product substitution/complementarity under price/production postponement, considering different business practices (holdback versus clearance, negative price policies) and different demand...