Revenue Management with Forward-Looking Buyers
AbstractWe consider a seller who wishes to sell K goods by time T. Potential buyers enter IID over time and are forward-looking, so can strategically time their purchases. At any point in time, profit is maximized by awarding the good to the agent with the highest valuation exceeding a cutoff. These cutoffs are characterized by a one-period-look-ahead rule and are deterministic, depending only on the number of units and time remaining. The cutoffs decrease over time and in the inventory size, and are independent of the buyers' arrival times. In the continuous time limit, the seller's profits are maximized by posting anonymous prices, with an auction for the last unit at time T. Unlike the cutoffs, the optimal prices depend on the history of past sales.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Society for Economic Dynamics in its series 2011 Meeting Papers with number 87.
Date of creation: 2011
Date of revision:
Contact details of provider:
Postal: Society for Economic Dynamics Christian Zimmermann Economic Research Federal Reserve Bank of St. Louis PO Box 442 St. Louis MO 63166-0442 USA
Web page: http://www.EconomicDynamics.org/society.htm
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Raphael Boleslavsky & Maher Said, 2013.
"Progressive Screening: Long-Term Contracting with a Privately Known Stochastic Process,"
Review of Economic Studies,
Oxford University Press, vol. 80(1), pages 1-34.
- Ralph Boleslavsky & Maher Said, 2011. "Progressive Screening: Long-Term Contracting with a Privately Known Stochastic Process," Working Papers 2011-5, University of Miami, Department of Economics.
- Hao Li & Xianwen Shi, 2013. "Discriminatory Information Disclosure," Working Papers tecipa-497, University of Toronto, Department of Economics.
- Philippe Choné & Romain De Nijs & Lionel Wilner, 2012. "Intertemporal Pricing with Unobserved Consumer Arrival Times," Working Papers 2012-23, Centre de Recherche en Economie et Statistique.
- Li, Juan & Tang, Ou, 2012. "Capacity and pricing policies with consumer overflow behavior," International Journal of Production Economics, Elsevier, vol. 140(2), pages 825-832.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christian Zimmermann).
If references are entirely missing, you can add them using this form.