Tag: Dynamic Pricing

Community-Owned Fiber Networks: Value Leaders in America – Pricing Review Shows They Provide Least-Expensive Local “Broadband” | Harvard

Community-Owned Fiber Networks: Value Leaders in America – Pricing Review Shows They Provide Least-Expensive Local “Broadband” | Harvard

Our examination of advertised prices shows that community-owned fiber-to-the-home (FTTH) networks in the nited States generally charge less for entry-level broadband service than do competing private providers, and don’t use initial low “teaser” rates that sharply rise months later. We also found that Comcast varies its pricing by region. Our study was constrained by the […]

Dynamic pricing: An efficient solution for true demand response enabling | Journal of Renewable and Sustainable Energy

Dynamic pricing: An efficient solution for true demand response enabling | Journal of Renewable and Sustainable Energy

ABSTRACT A dynamic pricing scheme, also known as real-time pricing (RTP), can be more efficient and technically beneficial than the other price-based schemes (such as flat-rate or time-of-use pricing) for enabling demand response (DR) actions. Over the past few years, the advantages of RTP-based schemes have been extensively discussed for DR purposes in electricity markets; […]

Paper: Robust Dynamic Pricing with Two Substitutable Products | Manufacturing & Service Operations Management

Paper: Robust Dynamic Pricing with Two Substitutable Products | Manufacturing & Service Operations Management

We consider a practical dynamic pricing problem with two substitutable products involving a number of business rules commonly seen in practice. Demand substitution exists between the two products (interproduct substitution) and may also exist across different time periods (intertemporal substitution). However, there is limited demand information such that the underlying probability distributions of the demand […]

When to Use Low Prices to Grab Market Share | Strategic Pricing Solutions

When to Use Low Prices to Grab Market Share | Strategic Pricing Solutions

I don’t use Uber often, but our family recently used it to take us to the airport. When we returned, we just walked outside the airport and hopped in a taxi.  The price of the Uber ride ended up about 35% lower than the price of the taxi.  That is not news.  It has been […]

Dynamic Pricing and Surge Pricing are Good for All | Strategic Pricing Solutions

Dynamic Pricing and Surge Pricing are Good for All | Strategic Pricing Solutions

If you’ve ever tried to take an Uber during a rainstorm or on a holiday, you know why surge pricing can be unpopular. Then again, if you’ve been picked up by that Uber while other people were still waiting for cabs, you know why it also makes sense and provides benefit to customers. Surge pricing which is another name […]

Paper: Invest in Information or Wing It? A Model of Dynamic Pricing with Seller Learning | HBS Working Knowledge

Paper: Invest in Information or Wing It? A Model of Dynamic Pricing with Seller Learning | HBS Working Knowledge

EXECUTIVE SUMMARY — Dealers who need to price idiosyncratic products–like houses, artwork, and used cars–often struggle with a lack of information about the demand for their specific items. Analyzing sales data from the used-car retail market, the authors of this paper develop a model of dynamic pricing for idiosyncratic products, showing that seller learning has […]

Blog: Can Jet.Com Make it Up on Volume? | Strategic Pricing Solutions

Blog: Can Jet.Com Make it Up on Volume? | Strategic Pricing Solutions

A little more than a month ago, Jet.com opened its digital doors for business.  Jet’s stated goal is to “make shopping more transparent, more efficient, and at the same time, a little more fun.”   The pitch to potential customers is they will save money buying things on Jet.com instead of Amazon, Costco, and other online […]

Blog: Situational Pricing – Lessons from the Super Bowl and Uber | Strategic Pricing Solutions

Blog: Situational Pricing – Lessons from the Super Bowl and Uber | Strategic Pricing Solutions

Uber’s surge pricing received more attention last week with the large snow storm in the Northeast, when Uber agreed they would not “gouge” consumers.  Prices would be higher than normal, but would not be excessive.  Conversely, tickets to the Super Bowl on the secondary market were higher than ever.  This past weekend, tickets in the […]

Paper: A dynamic pricing strategy for high occupancy toll lanes | Transportation Research

Paper: A dynamic pricing strategy for high occupancy toll lanes | Transportation Research

Highlights We propose a toll pricing strategy which can dynamically adjust toll price. The toll is adjusted based on value of travel time and travel conditions. The objective can be modified to achieve various levels of delay and revenue. Case study demonstrates effectiveness and feasibility of the proposed strategy. Abstract High Occupancy Toll (HOT) lanes […]

Paper: Dynamic Pricing with an Unknown Demand Model – Asymptotically Optimal Semi-Myopic Policies | INFORMS

Paper: Dynamic Pricing with an Unknown Demand Model – Asymptotically Optimal Semi-Myopic Policies | INFORMS

Abstract We consider a monopolist who sells a set of products over a time horizon of T periods. The seller initially does not know the parameters of the products’ linear demand curve, but can estimate them based on demand observations. We first assume that the seller knows nothing about the parameters of the demand curve, […]