Search results for "Dynamic pricing"
showing 9 items of 9 documents
Integrating Keyword Advertising and Dynamic Pricing for an Online Market Place
2014
Keyword Advertising is a main marketing instrument for e-commerce companies in order to generate traffic from search engines on their website. The costs for Keyword Advertising are determined in an auction that is conducted for every single search query, which is entered in by a user. In case of an online market place, each adlink provided by the search engine refers to an ordered list of products on the website of the online market place. Hereby, the price of the product is oftentimes one important criteria for the user when deciding for one or the other product from the list. However, existing models assume the price of products to be exogeneous. By taking into account the prices of linke…
Learning competitive pricing strategies by multi-agent reinforcement learning
2003
Abstract In electronic marketplaces automated and dynamic pricing is becoming increasingly popular. Agents that perform this task can improve themselves by learning from past observations, possibly using reinforcement learning techniques. Co-learning of several adaptive agents against each other may lead to unforeseen results and increasingly dynamic behavior of the market. In this article we shed some light on price developments arising from a simple price adaptation strategy. Furthermore, we examine several adaptive pricing strategies and their learning behavior in a co-learning scenario with different levels of competition. Q-learning manages to learn best-reply strategies well, but is e…
Channel Occupancy-Based Dynamic Spectrum Leasing in Multichannel CRNs: Strategies and Performance Evaluation
2016
Spectrum leasing has been proposed as an effective approach for enabling more flexible spectrum utilization in CRNs. In CRNs, a primary network (PN) which consists of multiple primary users (PUs) can lease part of the licensed spectrum to secondary users (SUs) in exchange for operational benefits. The focus of this study is to investigate how and to what extent the PN allows spectrum leasing in CRNs, considering the QoS requirements of the PN and the secondary network (SN). Correspondingly, we propose two dynamic spectrum leasing strategies, which can improve the QoS performance of SUs while ensuring sufficient remuneration for PUs. In order to dynamically adjust the portion of leased bandw…
A Simple Operating Strategy of Small-Scale Battery Energy Storages for Energy Arbitrage under Dynamic Pricing Tariffs
2015
Price arbitrage involves taking advantage of an electricity price difference, storing electricity during low-prices times, and selling it back to the grid during high-prices periods. This strategy can be exploited by customers in presence of dynamic pricing schemes, such as hourly electricity prices, where the customer electricity cost may vary at any hour of day, and power consumption can be managed in a more flexible and economical manner, taking advantage of the price differential. Instead of modifying their energy consumption, customers can install storage systems to reduce their electricity bill, shifting the energy consumption from on-peak to off-peak hours. This paper develops a deta…
Sharing economy and dynamic pricing: Is the impact of Airbnb on the hotel industry time-dependent?
2021
Abstract Prior literature has reported significant price and revenue reductions in the hotel industry due to the emergence of Airbnb. Other studies have documented that hotels' price reactions to the penetration of Airbnb depend on their service level, e.g., low/medium-end versus high end. Relying on a large sample from the Italian market, we contribute by showing that the effect of Airbnb on hotels' price decisions does not only depend on incumbents’ quality level, but also on the difference between booking and check-in time. That is, the effect of the penetration of Airbnb on hotels' dynamic price decisions varies over time depending on the core segment hotels target.
Weibull Model for Dynamic Pricing in e-Business
2011
As is the case with traditional markets, the sellers on the Internet do not usually know the demand functions of their customers. However, in such a digital environment, a seller can experiment different prices in order to maximize his profits. In this paper, we develop a dynamic pricing model to solve the pricing problem of a Web-store, where seller sets a fixed price and buyer either accepts or doesn’t buy. Frequent price changes occur due to current market conditions. The model is based on the two-parameter Weibull distribution (indexed by scale and shape parameters), which is used as the underlying distribution of a random variable X representing the amount of revenue received in the sp…
A simple operation strategy of battery storage systems under dynamic electricity pricing: An Italian case study for a medium-scale public facility
2014
In the electricity market, wholesale energy prices depend on the balance between energy production and load demand. In the last few years, electricity market has become more and more flexible as many utilities have started to replace the fixed retail prices schemes with prices changing during the day. Dynamic pricing, also known as Real-Time Pricing (RTP), reflects the trend of the wholesale market and allows to reduce the volatility of the wholesale prices, also contributing to a reduction of demand peaks. Electricity customers take advantage of dynamic pricing by shifting their consumption according to the real-time prices or by using Battery Energy Storage Systems (BESS) to shift electri…
Advance booking across channels: The effects on dynamic pricing
2021
This research analyzes the effects of advance booking and channel type on hotel rates. While this relationship has been addressed in the literature, most studies take a partial approach by focusing only on one distribution channel or one destination. This study fills this gap by analyzing the price dynamics for four channels and multiple destinations. The data set consists of 39,363 bookings for 1085 hotels over 27 consecutive months. We used two-stage least squares to solve potential endogeneity issues, and the results proved that distribution channel, hotel type and hotel size have an influence on the effect of advance booking on hotel rates. Critical managerial implications are discussed…
Dynaaminen hinnoittelu verkkokaupoissa
2016
Tämän kandidaattitutkielman tarkoituksena on selvittää kirjallisuuskatsauksella, minkälaisia dynaamisen hinnoittelun mahdollisuuksia yrityksellä on verkkokaupoissa. Tutkielmassa käydään läpi, mitä dynaaminen hinnoittelu on, millaisia dynaamisen hinnoittelun malleja on olemassa, minkälaista tietoa minkä- kin mallin käyttö tarvitsee, miten tietoa haetaan ja käsitellään sekä millaisia riskejä dynaamiseen hinnoitteluun sisältyy. Dynaaminen hinnoittelu on hinnoittelumalli, jossa hintaa muutellaan hinnoitteluun liittyvien tietojen perusteen. Dynaamisilla hinnoittelumetodeilla pyritään selvittämään asiakkaan maksuhalukkuus, hinnoitella tuote tai palvelu sen mukaan, ja näin saada maksuhalukkaammilt…