Revenue management for strategic buyers with time-inconsistency

Banerjeey, Shraman (2018) Revenue management for strategic buyers with time-inconsistency. [Working papers (or Preprints)] (Unpublished)

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Abstract

We consider the dynamic pricing problem of a seller who cannot cannot pre-commit to future price path. In the case when the buyers are time-inconsistent, we compare the revenue-maximizing price path of the seller with a benchmark case of time-consistent buyers. We show that under time-inconsistency, the seller has to lower the initial period prices and increase the more later period prices in order to induce the buyers to buy earlier. With large number of buyers, the sellerís problem coincides with the time-consistent case.

Item Type: Working papers (or Preprints)
Keywords: Revenue Management | Intertemporal Price Discrimination | Hyperbolic Discounting
Subjects: Social Sciences and humanities > Business, Management and Accounting > Accounting
Social Sciences and humanities > Business, Management and Accounting > Strategy and Management
JGU School/Centre: Jindal School of Government and Public Policy
Depositing User: Mr Sombir Dahiya
Date Deposited: 05 May 2022 04:04
Last Modified: 05 May 2022 04:04
Official URL: https://www.isid.ac.in/~epu/acegd2018/papers/Shram...
URI: https://pure.jgu.edu.in/id/eprint/2843

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