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The purpose of this paper is to study joint inventory and pricing strategy for a continuous inventory review system. While dynamic pricing decisions are often studied in the literature along with inventory management, the authors' aim in this study is to obtain a single long‐run optimal price; also to gain insight about how to obtain the optimal price and inventory control variables simultaneously and then the benefits of joint optimization of the inventory and pricing decisions over the sequential optimization policy often followed in practice.

A general (R;Q) policy system with fixed cost of ordering is modelled and then the case where unsatisfied demand is lost is studied. General forms of both the additive and multiplicative demand models are used to obtain structural results.

By showing optimality conditions on the price and inventory decision variables, two algorithms on how to obtain optimal decision variables, one for additive and another for multiplicative demand‐price model are provided. Through extensive numerical analyses, the potential profit increases are reported if the price and inventory problem are solved simultaneously instead of sequentially. In addition, the sensitivities of optimal decision variables to system parameters are revealed.

Although there are several studies in the literature investigating emergency price change models, they use arbitrary exogenous prices menus. However, the value of a price change can be better appreciated if the long‐run price is optimal for the system.

Very few researchers have investigated constant price and inventory optimization, and while there are several past studies demonstrating the benefits of dynamic pricing over a static one, there still are not many findings on the benefit of joint price and inventory optimization.

The purpose of this paper is to elaborate on the differences between price partitioning and drip pricing with regard to their influence on price recall, purchase intentions and fairness perceptions. In many industries, sellers advertise low prices and reveal other surcharges sequentially as the customer goes through the buying process. To date, little is known about how these sequential, or drip-pricing, techniques influence consumer behavior.

The study is based on an experimental between-subjects design (N = 95) with two groups. The data collection was conducted with a mixed scenario/stimuli-based online survey for a virtual travel agent.

The findings reveal that underestimation of the total price of an offering is significantly weaker when prices are presented sequentially rather than partitioned. In addition to reduced purchase intentions, drip pricing may negatively affect fairness perceptions when consumers feel deceived by the seller.

The study replicates findings of previous research on price partitioning but is one of the first empirical studies to examine the influence of sequence in price presentations. With this focus, the study opens up new avenues for pricing research.

For Marxists, the present controversies are rooted in Marx's own development and exposition of the labor theory of value, especially its presentation in Volumes I (Marx, 1954 [1867]) and III of Capital. As is well known, in Volume I, Marx begins with his analysis of commodities, emphasizing the role of human labor in both its concrete and abstract aspects, and from that he develops (1) the concepts of (exchange) value, of socially necessary labor time, and of its expression in the form of money and the distinction between value and price; (2) the concepts of capital and of surplus value; and (3) the concept of the commodity labor power. With these concepts, his analysis of capitalist production lays bare the nature of capitalist exploitation and links the phenomenon of profit to surplus value (i.e., the unpaid labor time of productive workers). In Parts I and II of Volume III, Marx, explicitly allowing for the interplay of many different capitals, endeavors to show how surplus value is converted into profit, how the rate of surplus value is converted into the rate of profit, how the general rate of profit is formed, and how the values of commodities are transformed into prices of production. He claimed that the transformation preserved the following equalities: total value=total prices; total surplus value=total profits; and, the rate of profit=the rate of surplus value. Marx's presentation of this material in Volume III is, unfortunately, quite rough, since this material is comprised of manuscripts that he had prepared prior to the publication of Volume I in 1867. These manuscripts were not, however, in a final, finished state, and unfortunately Marx never got around to getting them ready for publication.

In drip pricing, companies advertise low prices for products or services and then tack on additional surcharges later in the purchase process. This tactic has not only become popular for airlines but also for other online services, such as retailers and telecommunication companies. Despite the widespread use of drip pricing in the marketplace, little is known about its effects on consumer behavior. The purpose of this paper is to compare the effects of drip pricing with those of price partitioning. Specifically, it elaborates on perceived value, perceived deception, purchase intentions, and the moderating effect of price consciousness.

The paper develops a conceptual framework and tests four hypotheses with an experimental study on a purchase decision for a continental flight booked through an online travel agent. The experiment is based on a between-subjects design with two groups (n=130). The data are analyzed with multivariate statistics and structural equation modeling.

The findings reveal that drip pricing for service offerings leads to inferior results compared with partitioned pricing in terms of perceived value, perceived deception, and, ultimately, purchase intentions. The findings also indicate that the effects differ depending on the customer’s price consciousness.

The study draws from previous studies on partitioned pricing and replicates their findings. However, it is one of the first studies to elaborate on moderators and mediators of the consequences of drip pricing in a service context.

Describes and discusses a series of researches specifically designed for analysis by sequential techniques — these were aimed at investigating the relationship between price, and customer preference, for a consumer durable article. Defines sequential analysis as a technique concerned with a cumulative simple analysis of results as they are obtained. Documents that investigation of the technique found that, for some market research applications, it has advantages over the conventional technique of completion of field research, followed by full analysis of the data obtained. Uses a sequential analysis chart to add weight to this technique, and discusses results to two test market product candidates (X and Y). Follows up this research by stating sequential analysis is a simple, yet elegant, technique which appears to open new possibilities to market research personnel in many areas. Concludes that sequential analysis has been proved to offer a simple, reliable pricing framework in a situation of dichotomous choice.

The purpose of this paper is to design a parking space management platform to alleviate the parking problem and a two-stage solution for sharing and allocating parking spaces.

The market design mechanism and auction mechanism are integrated to solve the problem of parking space sharing and allocation. In the first stage, the market design mechanism with two rules is applied for making the good use of idle parking spaces. In the second stage, two sequential auction mechanisms are designed by extending first/second-price sealed bid auction mechanism to allocate both private and public parking spaces, which are received in previous stage and owned by the platform. Two stages are connected through a forecasted price which is calculated through the exponential smoothing method.

First, we prove three important properties of the proposed sequential auction mechanisms, namely, incentive compatibility, revenue equivalence and individual rationality. Second, a simulation study is used to verify the effectiveness of the mechanisms through numerical analysis. The impact of the system on three parts, namely, agents (private parking space suppliers), bidders (parking space customers) and the platform, is examined. Third, the results show that the sharing mechanism with monetrary incentive will attract a number of agents to join in the platform. The bidders are also able to obtain considerable utility, as compared with the (average) market parking fees. The platform can thus effectively allocate parking spaces with reasonable prices.

This paper combines the classical sequential auction mechanisms with the market design mechanism for the parking space sharing and allocation problem. The modeling and analysis method can also be used to address the similar allocation and pricing problems of other resources like bicycle sharing.

The purpose of this paper is to show how data analytics can be used to identify areas of potential cost savings for category managers of installation-level services. Using integrated solid waste management (ISWM) as a test case, the authors also examine the impact of small business set-asides on price and contractor performance.

The authors use data analytics, specifically sequential regression, the Wilcoxon rank-sum test and ordered logistic regression to investigate the influence of service- and contracting-related variables on price and contractor performance.

The authors find that service- and contracting-related variables influence price. Specifically, they identify that a service-related variable, number of containers, significantly affects price, and that two contracting-related variables, one type of small business set-aside and the number of offers received, also significantly affect price. The authors quantify the price premiums paid for using various types of small business set-asides.

Although the findings were significant, the authors believe that the robustness of the conclusions could be enhanced if the Air Force captured more data. Additional observations would increase the generalizability of the results.

This empirical experiment demonstrates that detailed analyses are required to gain insights into services’ price drivers to craft more appropriate category management strategies for installation-level services.

This empirical study shows how historical data can be used to assess price drivers of installation-level services. It is also one of the first to quantify the impact that small business set-asides have on price.

The purpose of this paper is to investigate the impact of wholesale price discrimination by a manufacturer in a retailer–e-tailer dual-channel supply chain for different product categories based on their online channel preference.

This paper considers a dual-channel supply chain comprising of a retailer and an e-tailer engaged in competition. Game-theoretic models are developed to model the competition between the retailer and e-tailer and to derive their optimal price, optimal order quantity and optimal profit under (1) equal wholesale price strategy and (2) discriminatory wholesale price strategy. Further, a numerical example was employed to quantify the results and to capture the variation with respect to online channel preference of the product.

It is beneficial for the manufacturer to adopt a discriminatory wholesale price strategy for products having both high online channel preference and low online channel preference. However, equal wholesale price strategy is beneficial for the e-tailer and the retailer in the case of products having high online channel preference and in the case of products having low online channel preference, respectively.

The study helps the manufacturers to maximize their profit by adopting the right wholesale price strategy considering the online channel preference of the product when the manufacturers are supplying to heterogeneous retailers.

There is scant literature on the wholesale price strategy of the manufacturer considering the heterogeneous downstream retailers. This paper contributes the literature by bridging this gap. In addition, the study establishes a link between the wholesale price strategy and online channel preference of the product.