Title: Dynamic pricing strategies in the presence of strategic consumer behavior risks
Abstract: This paper studies the dynamic pricing strategies in the presence of strategic consumer behavior risks.On the one hand,the monopolistic firm sells a fixed capacity of perishable goods within a limited time when the demand is uncertain,in the hope of maximizing expected revenue at a certain risk;On the other hand,strategic consumers set the chance of purchase on the basis of reference prices in the dynamic pricing.We find that: the game-perfect equilibrium is existent between the behavior strategies of monopolists and those of consumers;within the scope of balanced price,strategic purchase behavior changes the payments or payoffs among transaction counterparties and increases the uncertainty of firm's profits.As a response,the risk-sensitive firm tends to price conservatively and they realize the set goal of price with trading information transparency as the guide.
Publication Year: 2012
Publication Date: 2012-01-01
Language: en
Type: article
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Cited By Count: 3
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