Optimal Markdown Mechanisms in the Presence of Rational Customers with Multi-unit Demands

Event Details
  • Date/Time:
    • Friday November 21, 2003 - Thursday November 20, 2003
      10:00 am - 11:00 pm
  • Location: Groseclose, Room 404
  • Phone:
  • URL:
  • Email:
  • Fee(s):
    N/A
  • Extras:
Contact
Barbara Christopher
Industrial and Systems Engineering
Contact Barbara Christopher
404.385.3102
Summaries

Summary Sentence: Optimal Markdown Mechanisms in the Presence of Rational Customers with Multi-unit Demands

Full Summary: Optimal Markdown Mechanisms in the Presence of Rational Customers with Multi-unit Demands

In recent years, we have witnessed an increased adoption of existing dynamic pricing strategies and their further development. We analyze the optimal design of a markdown pricing mechanism, a form of dynamic pricing, in which the price decreases over time according to a pre-announced schedule. In the presence of limited supply, buyers who choose to purchase at a lower price may face a scarcity in supply. Our focus is on the structure of the optimal markdown mechanisms in the presence of rational or "strategic" buyers. We first examine a complete information setting where each customer demands multiple units. We then generalize our analysis to incomplete information settings where each customer's own valuation/demand is private information to that customer. Under complete and incomplete information settings, we compare the seller's profits resulting from the optimal markdown prices and the optimal single price.

Additional Information

In Campus Calendar
No
Groups

H. Milton Stewart School of Industrial and Systems Engineering (ISYE)

Invited Audience
No audiences were selected.
Categories
Seminar/Lecture/Colloquium
Keywords
No keywords were submitted.
Status
  • Created By: Barbara Christopher
  • Workflow Status: Published
  • Created On: Oct 8, 2010 - 7:42am
  • Last Updated: Oct 7, 2016 - 9:52pm