IDEAS home Printed from https://ideas.repec.org/a/ucp/jnlbus/v65y1992i4p593-614.html
   My bibliography  Save this article

Dynamic Monopoly Pricing under a Poisson-Type Uncertain Demand

Author

Listed:
  • Chen, Yu-Min
  • Jain, Dipak C

Abstract

This article explores dynamic pricing strategies in the presence of uncertainty. Diffusion dynamics, experience curve effects, and a Poisson type of uncertainty in the demand are incorporated in a model using the framework of a stochastic control problem. The results indicate that the movement of the expected price depends on the relative strength of the contingent effects and the effects of the experience. If the direction of the former is opposite to the latter and is substantial enough to dominate it, the expected price path will show a pattern different from the one predicted by a deterministic model. Copyright 1992 by University of Chicago Press.

Suggested Citation

  • Chen, Yu-Min & Jain, Dipak C, 1992. "Dynamic Monopoly Pricing under a Poisson-Type Uncertain Demand," The Journal of Business, University of Chicago Press, vol. 65(4), pages 593-614, October.
    • Handle: RePEc:ucp:jnlbus:v:65:y:1992:i:4:p:593-614
    DOI: 10.1086/296587
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/296587
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    File URL: https://libkey.io/10.1086/296587?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rubel, Olivier, 2013. "Stochastic competitive entries and dynamic pricing," European Journal of Operational Research, Elsevier, vol. 231(2), pages 381-392.
    2. Régis Chenavaz & Corina Paraschiv & Gabriel Turinici, 2017. "Dynamic Pricing of New Products in Competitive Markets: A Mean-Field Game Approach," Working Papers hal-01592958, HAL.
    3. Rubel, Olivier, 2018. "Profiting from product-harm crises in competitive markets," European Journal of Operational Research, Elsevier, vol. 265(1), pages 219-227.
    4. den Boer, Arnoud V., 2015. "Tracking the market: Dynamic pricing and learning in a changing environment," European Journal of Operational Research, Elsevier, vol. 247(3), pages 914-927.
    5. Adil Baykasoğlu & İlker Gölcük & Derya Eren Akyol, 2017. "A fuzzy multiple-attribute decision making model to evaluate new product pricing strategies," Annals of Operations Research, Springer, vol. 251(1), pages 205-242, April.
    6. Régis Chenavaz & Corina Paraschiv & Gabriel Turinici, 2021. "Dynamic Pricing of New Products in Competitive Markets: A Mean-Field Game Approach," Dynamic Games and Applications, Springer, vol. 11(3), pages 463-490, September.
    7. Wedad Elmaghraby & P{i}nar Keskinocak, 2003. "Dynamic Pricing in the Presence of Inventory Considerations: Research Overview, Current Practices, and Future Directions," Management Science, INFORMS, vol. 49(10), pages 1287-1309, October.
    8. Shiming Deng & Candace A. Yano, 2006. "Joint Production and Pricing Decisions with Setup Costs and Capacity Constraints," Management Science, INFORMS, vol. 52(5), pages 741-756, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:jnlbus:v:65:y:1992:i:4:p:593-614. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journals Division (email available below). General contact details of provider: https://www.jstor.org/journal/jbusiness .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.