Intertemporal service pricing with strategic customers

Pengfei Guo; John J. Liu; Yulan Wang

doi:10.1016/j.orl.2009.06.003

Intertemporal service pricing with strategic customers

Pengfei Guo, John J. Liu, Yulan Wang

Research output: Journal article publication › Journal article › Academic research › peer-review

10 Citations (Scopus)

Abstract

We study a two-period intertemporal pricing game in a single-server service system with forward-looking strategic customers who make their purchase decision based on current information and anticipated future gains. Subgame perfect Nash equilibrium (SPNE) prices are derived. A comparison between revenue-maximizing equilibrium prices and welfare-maximizing equilibrium prices is conducted and the impact on the system's performance of misunderstanding customers' type is evaluated.

Original language	English
Pages (from-to)	420-424
Number of pages	5
Journal	Operations Research Letters
Volume	37
Issue number	6
DOIs	https://doi.org/10.1016/j.orl.2009.06.003
Publication status	Published - 1 Nov 2009

Keywords

Intertemporal pricing
Service management
Strategic customers

ASJC Scopus subject areas

Software
Management Science and Operations Research
Industrial and Manufacturing Engineering
Applied Mathematics

More information

10.1016/j.orl.2009.06.003

Cite this

@article{1d24e5048d33403696f6d56a7c61e0d9,

title = "Intertemporal service pricing with strategic customers",

abstract = "We study a two-period intertemporal pricing game in a single-server service system with forward-looking strategic customers who make their purchase decision based on current information and anticipated future gains. Subgame perfect Nash equilibrium (SPNE) prices are derived. A comparison between revenue-maximizing equilibrium prices and welfare-maximizing equilibrium prices is conducted and the impact on the system's performance of misunderstanding customers' type is evaluated.",

keywords = "Intertemporal pricing, Service management, Strategic customers",

author = "Pengfei Guo and Liu, {John J.} and Yulan Wang",

year = "2009",

month = nov,

day = "1",

doi = "10.1016/j.orl.2009.06.003",

language = "English",

volume = "37",

pages = "420--424",

journal = "Operations Research Letters",

issn = "0167-6377",

publisher = "Elsevier B.V.",

number = "6",

}

TY - JOUR

T1 - Intertemporal service pricing with strategic customers

AU - Guo, Pengfei

AU - Liu, John J.

AU - Wang, Yulan

PY - 2009/11/1

Y1 - 2009/11/1

N2 - We study a two-period intertemporal pricing game in a single-server service system with forward-looking strategic customers who make their purchase decision based on current information and anticipated future gains. Subgame perfect Nash equilibrium (SPNE) prices are derived. A comparison between revenue-maximizing equilibrium prices and welfare-maximizing equilibrium prices is conducted and the impact on the system's performance of misunderstanding customers' type is evaluated.

AB - We study a two-period intertemporal pricing game in a single-server service system with forward-looking strategic customers who make their purchase decision based on current information and anticipated future gains. Subgame perfect Nash equilibrium (SPNE) prices are derived. A comparison between revenue-maximizing equilibrium prices and welfare-maximizing equilibrium prices is conducted and the impact on the system's performance of misunderstanding customers' type is evaluated.

KW - Intertemporal pricing

KW - Service management

KW - Strategic customers

UR - http://www.scopus.com/inward/record.url?scp=70349792597&partnerID=8YFLogxK

U2 - 10.1016/j.orl.2009.06.003

DO - 10.1016/j.orl.2009.06.003

M3 - Journal article

SN - 0167-6377

VL - 37

SP - 420

EP - 424

JO - Operations Research Letters

JF - Operations Research Letters

IS - 6

ER -

Intertemporal service pricing with strategic customers

Abstract

Keywords

ASJC Scopus subject areas

More information

Other files and links

Fingerprint

Cite this