Competitive Multi-period Pricing with Fixed Inventories
This paper studies the problem of multi-period pricing for perishable products in a competitive (oligopolistic) market. We study non cooperative Nash equilibrium policies for sellers. At the beginning of the time horizon, the total inventories are given and additional production is not an available...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | en_US |
| Published: |
2003
|
| Subjects: | |
| Online Access: | http://hdl.handle.net/1721.1/3880 |
| _version_ | 1826194411029004288 |
|---|---|
| author | Perakis, Georgia Sood, Anshul |
| author_facet | Perakis, Georgia Sood, Anshul |
| author_sort | Perakis, Georgia |
| collection | MIT |
| description | This paper studies the problem of multi-period pricing for perishable products in a competitive (oligopolistic) market. We study non cooperative Nash equilibrium policies for sellers. At the beginning of the time horizon, the total inventories are given and additional production is not an available option. The analysis for periodic production-review models, where production decisions can be made at the end of each period at some production cost after incurring holding or backorder costs, does not extend to this model. Using results from game theory and variational inequalities we study the existence and uniqueness of equilibrium policies. We also study convergence results for an algorithm that computes the equilibrium policies. The model in this paper can be used in a number of application areas including the airline, service and retail industries. We illustrate our results through some numerical examples. |
| first_indexed | 2024-09-23T09:55:24Z |
| format | Article |
| id | mit-1721.1/3880 |
| institution | Massachusetts Institute of Technology |
| language | en_US |
| last_indexed | 2024-09-23T09:55:24Z |
| publishDate | 2003 |
| record_format | dspace |
| spelling | mit-1721.1/38802019-04-12T13:40:55Z Competitive Multi-period Pricing with Fixed Inventories Perakis, Georgia Sood, Anshul multi-period pricing non cooperative Nash equilibrium policies game theory variational inequalities perishable products This paper studies the problem of multi-period pricing for perishable products in a competitive (oligopolistic) market. We study non cooperative Nash equilibrium policies for sellers. At the beginning of the time horizon, the total inventories are given and additional production is not an available option. The analysis for periodic production-review models, where production decisions can be made at the end of each period at some production cost after incurring holding or backorder costs, does not extend to this model. Using results from game theory and variational inequalities we study the existence and uniqueness of equilibrium policies. We also study convergence results for an algorithm that computes the equilibrium policies. The model in this paper can be used in a number of application areas including the airline, service and retail industries. We illustrate our results through some numerical examples. Singapore-MIT Alliance (SMA) 2003-12-14T22:32:38Z 2003-12-14T22:32:38Z 2004-01 Article http://hdl.handle.net/1721.1/3880 en_US High Performance Computation for Engineered Systems (HPCES); 142714 bytes application/pdf application/pdf |
| spellingShingle | multi-period pricing non cooperative Nash equilibrium policies game theory variational inequalities perishable products Perakis, Georgia Sood, Anshul Competitive Multi-period Pricing with Fixed Inventories |
| title | Competitive Multi-period Pricing with Fixed Inventories |
| title_full | Competitive Multi-period Pricing with Fixed Inventories |
| title_fullStr | Competitive Multi-period Pricing with Fixed Inventories |
| title_full_unstemmed | Competitive Multi-period Pricing with Fixed Inventories |
| title_short | Competitive Multi-period Pricing with Fixed Inventories |
| title_sort | competitive multi period pricing with fixed inventories |
| topic | multi-period pricing non cooperative Nash equilibrium policies game theory variational inequalities perishable products |
| url | http://hdl.handle.net/1721.1/3880 |
| work_keys_str_mv | AT perakisgeorgia competitivemultiperiodpricingwithfixedinventories AT soodanshul competitivemultiperiodpricingwithfixedinventories |