Dynamic Pricing of Perishable Products with Competition

DOI: 10.4236/jss.2015.33010   PDF   HTML   XML   4,622 Downloads   5,128 Views   Citations


With the development of product development technology and the rapid rise of online retailing, the market competition becomes increasingly fierce. Based on consumer utility function, this article established a two-stage dynamic pricing model and discussed pricing strategies under consumer behavior and market competition. Findings indicate that product quality difference and consumer valuation decreasing coefficient determine the order of the consumer purchase decisions. The firm who provides lower-quality products suffered more loss than the firm who provides high-quality products.

Share and Cite:

Ji, W. (2015) Dynamic Pricing of Perishable Products with Competition. Open Journal of Social Sciences, 3, 48-52. doi: 10.4236/jss.2015.33010.

Conflicts of Interest

The authors declare no conflicts of interest.


[1] Granot, D., Granot, F. and Mantin, B. (2010) A Dynamic Pricing Model under Duopoly Competition. Manuscript, University of British Columbia, Canada.
[2] Levin, Y., McGill, J. and Nediak, M. (2009) Dynamic Pricing in the Presence of Strategic Consumer and Oligopolistic Competition. Management Science, 42, 291-293.
[3] Levin, Y., McGill, J. and Nediak, M. (2010) Optimal Dynamic Pricing of Perishable Items by a Monopolist Facing Strategic Consumers. Management Science, 19, 40-60.
[4] Dasci, A. and Karakul, M. (2009) Two-Period Dynamic versus Fixed-Ratio Pricing in a Capacity Constrained Duopoly. European Journal of Operational Research, 197, 945-968. http://dx.doi.org/10.1016/j.ejor.2007.12.039
[5] Chen, Y.X. and Zhang, Z.J. (2009) Dynamic Targeted Pricing with Strategic Consumers. International Journal of Industrial Organization, 27, 43-50. http://dx.doi.org/10.1016/j.ijindorg.2008.03.002
[6] Li, H., Xiong, Z.K. and Peng, Q. (2010) Dynamic Price Competition for Two Parallel Flights with Passenger preference. Industrial Engineering, 13, 86-90.
[7] Li, H. and Xiong, Z.K. (2011) Optimal Dynamic Pricing for Perishable Assets in Competitive Markets with Strategic Consumers. Chinese Journal of Management Science, 19, 88-98.

comments powered by Disqus

Copyright © 2020 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.