Revenue Management with Forward-Looking Buyers
Bibliographic Data
| ID | 10173259 |
|---|---|
| Authors | Simon Board (University of California, Los Angeles), Andrzej Skrzypacz (Stanford University) |
| Year | 2016 |
| Volume | 124 |
| Issue | 4 |
| Pages | 1046-1087 |
| Publication date | 2016-06-30 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0022-3808 • E-ISSN: 1537-534X |
| Publisher | University of Chicago Press (PUBLISHER • US) |
| DOI | 10.1086/686713 |
| OpenAlex | W2461647303 |
| Language | EN |
| Citations received | 1 |
| References cited | 31 |
A seller wishes to sell multiple goods by a deadline, for example, the end of a season. Potential buyers enter over time and can strategically time their purchases. Each period, the profit-maximizing mechanism awards units to the buyers with the highest valuations exceeding a sequence of cutoffs. We show that these cutoffs are deterministic, depending only on the inventory and time remaining; in the continuous-time limit, the optimal mechanism can be implemented by posting anonymous prices. When incoming demand decreases over time, the optimal cutoffs satisfy a one-period-look-ahead property and prices are defined by an intuitive differential equation
Business · Differential (mechanical device · Economics · Limit (mathematics · Mathematical economics · Microeconomics · Profit (economics · Revenue · Sequence (biology · Time limit · Auction Theory and Applications · Consumer Market Behavior and Pricing · Finance · Mathematics · Supply Chain and Inventory Management
| Citations per year | 0.07 |
|---|---|
| Citation span | 2012 - 2012 (1) |
| Highly cited | No |