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Dynamic Pricing Models and Negotiating Agents: Developments in Management Accounting

Author

Listed:
  • Edgard Bruno Cornacchione

    (School of Economics, Management and Accounting, University of Sao Paulo, Prof Luciano Gualberto Ave 908, Sao Paulo 05508-010, Brazil)

  • Luciane Reginato

    (School of Economics, Management and Accounting, University of Sao Paulo, Prof Luciano Gualberto Ave 908, Sao Paulo 05508-010, Brazil)

  • Joshua Onome Imoniana

    (School of Economics, Management and Accounting, University of Sao Paulo, Prof Luciano Gualberto Ave 908, Sao Paulo 05508-010, Brazil)

  • Marcelo Souza

    (FIPECAFI (A Fundação Instituto de Pesquisas Contábeis, Atuariais e Financeiras), R. Maestro Cardim 1170, Bela Vista, Sao Paulo 01323-001, Brazil)

Abstract

Linking decision systems, negotiating agents, management accounting, and computational accounting, this paper aims at exploring dynamic pricing strategies of a synthetic business-to-consumer online operation and a comparative analysis of evolving strategy-specific pricing optimization. Five price models based on market, utility, or demand information (three single and two combined), merging online and offline data, are explored over a seven-day period and with twenty selected products. A total of 17,529 website visits and 538 agent negotiations are studied (94,607 main data points) using a Python solution, with model simulation parameters and assumptions described. Findings show the combined market-utility-demand performance of dynamic pricing to be superior as an input to the negotiating agent. Contributions are threefold, pointing to (a) management accounting practice and research (dynamic pricing), (b) science and research strategy (method), and (c) accounting education (skill set).

Suggested Citation

  • Edgard Bruno Cornacchione & Luciane Reginato & Joshua Onome Imoniana & Marcelo Souza, 2023. "Dynamic Pricing Models and Negotiating Agents: Developments in Management Accounting," Administrative Sciences, MDPI, vol. 13(2), pages 1-16, February.
    • Handle: RePEc:gam:jadmsc:v:13:y:2023:i:2:p:57-:d:1066803
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    References listed on IDEAS

    as
    1. Friederike Wall & Stephan Leitner, 2020. "Agent-based Computational Economics in Management Accounting Research: Opportunities and Difficulties," Papers 2011.03297, arXiv.org.
    2. Ante Farm, 2020. "Pricing in practice in consumer markets," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 43(1), pages 61-75, January.
    3. Constantinos Maglaras & Joern Meissner, 2006. "Dynamic Pricing Strategies for Multiproduct Revenue Management Problems," Manufacturing & Service Operations Management, INFORMS, vol. 8(2), pages 136-148, July.
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